Restoring entitlement for VA home loans Published Dec. 29, 2011 By Capt. Kevin Hakala Assistant staff judge advocate MINOT AIR FORCE BASE, N.D. -- As a result of last summer's flooding, thousands of homes in Minot were destroyed. Many of these homes were purchased by Airmen with Veterans Affairs-backed loans. The unfortunate economic reality of this natural disaster is that a number of these homeowners have been forced to consider foreclosing on their mortgages. Servicemembers who have lost their homes to foreclosure or surrendered their deed in lieu of foreclosure may apply for a one-time only restoration of their eligibility for a VA home loan guaranty. Under most circumstances, veterans are required to repay any losses sustained by the VA due to foreclosure or deed in lieu of foreclosure proceedings in order to restore full loan guaranty eligibility. However, there is a waiver provision for cases involving disasters caused by conditions beyond the veteran's control. For cases in which the property was disposed of because it was substantially damaged by flood, landslide, subsidence, or other unusual circumstances, the Secretary of Veterans' Affairs can approve a waiver of the requirement to repay the loss. This is a case-by-case determination. In order to apply for the one-time only restoration, the following steps must take place: · Fill out a hard-copy of VA Form 26-1880 and make sure to check box 11A, One-Time Only Restoration of Entitlement. The form is available on the VA's website at http://www.va.gov/vaforms/. Do not use the online application process. · Attach a short statement requesting a waiver of the requirement that any loss to the government be repaid in full. Include an explanation of why the waiver should be granted. · Provide documentation of how the home was destroyed or made uninhabitable and include a statement that no insurance proceeds were received. · Mail the VA Form 26-1880 with attachments to the Atlanta Eligibility Center at: Atlanta Regional Loan Center Attn: COE (262) P.O. Box 100034 Decatur, GA 30031 Phone: 1-888-768-2132, (currently Option 1, then Option 1 again) · The Atlanta Eligibility Center will process the request and forward it to the VA Central Office for a Secretarial decision. Remember, this is a case-by-case determination. There is no requirement that the Secretary approve requests for the waiver. For questions regarding this issue, please contact your base legal office at 723-3026.