What is the VA COW Committee?
It is possible to assume older VA loans, those originated before March 1, 1988, without approval or review by a lender. If it happens that someone assumes such a loan, and the loan goes into default, the original VA borrower is responsible for paying any shortage if the loan is foreclosed.
But, in some cases older VA loans go into default for reasons that the original borrower could not anticipate. In such instances, the VA has developed what is known as the “Compromise and Waiver” (COW) committee. Vets who find their old loans in foreclosure can petition the VA for a hearing before the COW committee. The committee can then review the facts and circumstances involved, and it may then reduce or eliminate the repayment obligation of the vet.
For details, contact your local VA office as soon as possible if a loan for which you are responsible gets into trouble.
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