Assumption and Release of Liability
Saint Paul Regional Office
Regional Loan Center
Release of Liability and Assumption
If a veteran decides to sell the property which secures their GI loan, they will still be legally liable to the government on that loan unless the loan is paid in full in connection with the sale. A veteran may decide to have their loan assumed instead of selling the property outright. The veteran may request a release of liability from the United States Government. If a veteran's home loan goes into default/foreclosure after an assumption and release of liability have been processed, the VA will not pursue collection from the original veteran.
VBA Circular 26-08-3, Processing Transfers of Ownership Under VALERI
Servicers process almost all ownership transfer approval requests for VA-guaranteed loans, including those where the commitment was issued prior to March 1, 1988, and certain divorce cases. Servicers are responsible for electronically reporting authorized ownership transfers and releases of liability thru VALERI.
For more information: VA Pamphlet 26-68-1: Selling your GI Home?
