Title 38 — Veterans' BenefitsRelease 119-73

§2053 Default

Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 20— - BENEFITS FOR HOMELESS VETERANS › Subchapter SUBCHAPTER VI— - LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL HOUSING › § 2053

Last updated Apr 6, 2026|Official source

Summary

The Secretary must try to collect payment on any loan that is in default and that the government guarantees under this part. If a guaranteed loan defaults and is ended under State law, the lender can file a claim under the guarantee for up to the smaller of two amounts: the guarantee’s maximum, or the difference between (1) the total amount owed through the date of the public sale — including principal, interest, and expenses allowed by the loan papers — and (2) the money actually received at that sale.

Full Legal Text

Title 38, §2053

Veterans' Benefits — Source: USLM XML via OLRC

(a)The Secretary shall take such steps as may be necessary to obtain repayment on any loan that is in default and that is guaranteed under this subchapter.

(b)Upon default of a loan guaranteed under this subchapter and terminated pursuant to State law, a lender may file a claim under the guarantee for an amount not to exceed the lesser of—

(1)the maximum guarantee; or

(2)the difference between—

(A)the total outstanding obligation on the loan, including principal, interest, and expenses authorized by the loan documents, through the date of the public sale (as authorized under such documents and State law); and

(B)the amount realized at such sale.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2001—Pub. L. 107–95 renumbered section 3774 of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an

Effective Date

of 1998 Amendment note under section 2106 of this title.

Reference

Citations & Metadata

Citation

38 U.S.C. § 2053

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73