The VA Home Loan Program Reform Act, referred to in subsec. (d), is Pub. L. 119–31, July 30, 2025, 139 Stat. 475. For complete classification of this Act to the Code, see Short Title of 2025 Amendment note set out under section 101 of this title and Tables.

2025—Subsec. (a)(1). Pub. L. 119–31, § 2(a)(1)(A), substituted “holder of the loan” for “holder of the obligation” in two places.

Subsec. (a)(2)(A). Pub. L. 119–31, § 2(a)(1)(B)(i), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “Before suit or foreclosure the holder of the obligation shall notify the Secretary of the default, and within thirty days thereafter the Secretary may, at the Secretary’s option, pay the holder of the obligation the unpaid balance of the obligation plus accrued interest and receive an assignment of the loan and security. Nothing in this section shall preclude any forebearance for the benefit of the veteran as may be agreed upon by the parties to the loan and approved by the Secretary.”

Subsec. (a)(2)(B). Pub. L. 119–31, § 2(a)(1)(B)(ii), substituted “of the housing loan” for “of the obligation” in two places.

Subsec. (a)(2)(C), (D). Pub. L. 119–31, § 2(a)(1)(B)(iii), added subpars. (C) and (D).

Subsec. (a)(5). Pub. L. 119–31, § 2(a)(1)(C), substituted “holder of the loan” for “holder of the obligation”.

Subsec. (c)(1). Pub. L. 119–31, § 2(a)(2)(A), substituted “subsection:” for “subsection—” in introductory provisions.

Subsec. (c)(10)(B)(i). Pub. L. 119–31, § 2(a)(2)(B), substituted “forbearance” for “forebearance” in two places.

Subsec. (d). Pub. L. 119–31, § 2(a)(3), added subsec. (d).

2018—Subsec. (c)(11). Pub. L. 115–251 struck out par. (11) which read as follows: “This subsection shall apply to loans closed before September 30, 2018.”

2017—Subsec. (c)(11). Pub. L. 115–62 substituted “September 30, 2018” for “October 1, 2017”.

2016—Subsec. (c)(11). Pub. L. 114–228 substituted “October 1, 2017” for “October 1, 2016”.

2015—Subsec. (c)(11). Pub. L. 114–58 substituted “October 1, 2016” for “October 1, 2015”.

2014—Subsec. (c)(11). Pub. L. 113–175 substituted “October 1, 2015” for “October 1, 2014”.

2013—Subsec. (c)(11). Pub. L. 113–37 substituted “October 1, 2014” for “October 1, 2013”.

2012—Subsec. (c)(11). Pub. L. 112–191 substituted “October 1, 2013” for “October 1, 2012”.

2010—Subsec. (a)(2). Pub. L. 111–275 designated existing provisions as subpar. (A) and added subpar. (B).

2006—Subsec. (c)(10)(D). Pub. L. 109–233 substituted “paragraphs (5)(B), (6), (7)(B), and (8)(B)” for “clause (B) of paragraphs (5), (6), (7), and (8) of this subsection”.

2003—Subsec. (c)(11). Pub. L. 108–183 substituted “October 1, 2012” for “October 1, 2011”.

2001—Subsec. (c)(11). Pub. L. 107–103 substituted “October 1, 2011” for “October 1, 2008”.

2000—Subsec. (c)(11). Pub. L. 106–419 substituted “October 1, 2008” for “October 1, 2002”.

1997—Subsec. (c)(11). Pub. L. 105–33 substituted “October 1, 2002” for “October 1, 1998”.

1994—Subsec. (c)(6). Pub. L. 103–446, § 907(b), struck out “either” after “defaulted loan”, substituted “sale,” for “sale or acquires the property at such sale for an amount that exceeds the lesser of the net value of the property or the total indebtedness under the loan—”, struck out text of subpar. (A) and subpar. (B) designation before “the liability”, and redesignated cls. (i) and (ii) as cls. (A) and (B), respectively. Prior to amendment, subpar. (A) read as follows: “the Secretary may not accept conveyance of the property except as provided in paragraph (7) of this subsection; and”.

Subsec. (c)(7). Pub. L. 103–446, § 907(a)(1), struck out “that was the minimum amount for which, under applicable State law, the property was permitted to be sold at the liquidation sale—” after “net value and” in introductory provisions.

Subsec. (c)(7)(A). Pub. L. 103–446, § 907(a)(2), substituted “(i) the amount was the minimum amount for which, under applicable State law, the property was permitted to be sold at the liquidation sale, the holder shall have the option to convey the property to the United States in return for payment by the Secretary of an amount equal to” for “the Secretary may accept conveyance of the property to the United States for a price not exceeding” and “loan; or” for “loan; and” and added cl. (ii).

Subsec. (c)(7)(B). Pub. L. 103–446, § 907(a)(3), substituted “paragraph (6)” for “paragraph (6)(B)”.

1993—Subsec. (c)(1)(C). Pub. L. 103–66, § 12006(a)(1), inserted “(including losses sustained on the resale of the property)” after “resale”.

Subsec. (c)(11). Pub. L. 103–66, § 12006(a)(2), substituted “shall apply to loans closed before October 1, 1998” for “shall cease to have effect on December 31, 1992”.

1991—Pub. L. 102–83, § 5(a), renumbered section 1832 of this title as this section.

Subsec. (a)(1). Pub. L. 102–83, § 5(c)(1), substituted “3703(e)” for “1803(e)”.

Subsec. (a)(4)(C). Pub. L. 102–54, § 1, struck out subpar. (C) which read as follows: “The authority to carry out this paragraph shall terminate on March 1, 1991.”

Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted “3711” for “1811”.

Subsec. (c)(1)(A). Pub. L. 102–83, § 5(c)(1), substituted “3710(a)” for “1810(a)”.

Subsec. (c)(9). Pub. L. 102–83, § 5(c)(1), substituted “3703(b)” for “1803(b)”.

Subsec. (c)(11). Pub. L. 102–54, § 3(a), substituted “December 31, 1992” for “October 1, 1991”.

1989—Subsec. (a). Pub. L. 101–237, § 313(b)(1), (2), substituted “Secretary”, “Secretary’s”, and “Department of Veterans Affairs’ ” for “Administrator”, “Administrator’s”, and “Veterans’ Administration’s”, respectively, wherever appearing.

Pub. L. 101–237, § 304(b), substituted “Except as provided in section 1803(e) of this title, if” for “If” in last sentence of par. (1).

Subsec. (a)(5). Pub. L. 101–237, § 307, added par. (5).

Subsecs. (b), (c). Pub. L. 101–237, § 313(b)(1), (2), substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively, wherever appearing.

Subsec. (c)(1)(C)(ii). Pub. L. 101–237, § 308(a), inserted “, excluding any amount attributed to the cost to the Government of borrowing funds” before period at end.

Subsec. (c)(11). Pub. L. 101–237, § 308(b)(1), substituted “October 1, 1991” for “October 1, 1989”.

1988—Pub. L. 100–322, § 415(b)(1)(C), (5)(A), redesignated section catchline of section 1816 of this title as section catchline of this section and struck out former catchline which read as follows: “Furnishing information to real estate professionals to facilitate the disposition of properties”.

Subsec. (a). Pub. L. 100–322, § 415(b)(1)(A), (C), redesignated subsec. (a) of section 1816 of this title as subsec. (a) of this section, and in par. (4)(A)(i)(I) substituted “paragraph (2) of this subsection” for “section 1816(a)(2) of this title”.

Subsec. (b). Pub. L. 100–322, § 415(b)(1)(C), redesignated subsec. (b) of section 1816 of this title as subsec. (b) of this section.

Subsec. (c). Pub. L. 100–322, § 415(b)(1)(B), (C), redesignated subsec. (c) of section 1816 of this title as subsec. (c) of this section, in par. (10)(A) inserted “(or such earlier date following the expiration of a reasonable period of time for such sale to occur as the Administrator may specify pursuant to regulations prescribed by the Administrator to implement this subsection)” before period at end, and in par. (10)(B)(ii) inserted “(5)(A) or” after “under paragraph”.

1987—Subsec. (a)(4). Pub. L. 100–198, § 4(a), added par. (4).

Subsec. (c)(1)(D). Pub. L. 100–198, § 5(a)(1)–(3), substituted “Except as provided in subparagraph (D) of paragraph (10) of this subsection, the” for “The” at beginning, “applicable under paragraph (10) of this subsection, and” for “of the liquidation sale of the property securing the loan (or such earlier date following the expiration of a reasonable period of time for such sale to occur as the Administrator may specify pursuant to regulations prescribed by the Administrator to implement this subsection), and” in cl. (ii), and “regulations prescribed by the Administrator to implement this subsection” for “such regulations” in cl. (iii).

Subsec. (c)(10), (11). Pub. L. 100–198, § 5(a)(4), added pars. (10) and (11).

1984—Subsec. (a)(1). Pub. L. 98–369, § 2512(a)(1)(A)–(C), designated existing first sentence as par. (1), substituted “Administrator of such default. Upon receipt of such notice, the Administrator may, subject to subsection (c) of this section,” for “Administrator who shall thereupon”, and substituted “guaranteed. If the Administrator makes a payment, the Administrator shall” for “guaranteed, and shall”.

Subsec. (a)(2). Pub. L. 98–369, § 2512(a)(1)(A), designated existing second and third sentences as par. (2).

Subsec. (a)(3). Pub. L. 98–369, § 2512(a)(1)(A), designated existing fourth sentence as par. (3).

Subsec. (c). Pub. L. 98–369, § 2512(a)(2), added subsec. (c).

1976—Subsec. (a). Pub. L. 94–324 substituted “the Administrator’s” for “his”.

Subsec. (b). Pub. L. 94–324 substituted “the Administrator” for “he” wherever appearing.

1965—Pub. L. 89–117 designated existing provisions as subsec. (a) and added subsec. (b).

Amendment by Pub. L. 113–37 effective Oct. 1, 2013, see section 4(a) of Pub. L. 113–37, set out as a note under section 322 of this title.

Pub. L. 111–275, title VIII, § 802(b), Oct. 13, 2010, 124 Stat. 2889, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to a housing loan guaranteed after the date of the enactment of this Act [Oct. 13, 2010].”

Pub. L. 103–66, title XII, § 12006(b), Aug. 10, 1993, 107 Stat. 414, provided that: “The amendments made by this section [amending this section] shall become effective October 1, 1993.”

Pub. L. 101–237, title III, § 308(b)(2), Dec. 18, 1989, 103 Stat. 2075, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect as of October 1, 1989.”

Pub. L. 100–198, § 4(b), Dec. 21, 1987, 101 Stat. 1316, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on March 1, 1988.”

Pub. L. 100–198, § 5(c), Dec. 21, 1987, 101 Stat. 1317, provided that: “The amendments made by subsection (a) [amending this section] shall apply to defaults which occur more than 60 days after the date of the enactment of this Act [Dec. 21, 1987].”

Pub. L. 100–136, § 1(a), Oct. 16, 1987, 101 Stat. 813, provided that: “Notwithstanding section 2512(c) of the Deficit Reduction Act of 1984 (Public Law 98–369) [set out below], the provisions of section 1816(c) [now 3732(c)] of title 38, United States Code, shall continue in effect through November 15, 1987.”

Pub. L. 98–369, div. B, title V, § 2512(c)(1), July 18, 1984, 98 Stat. 1120, provided that: “The amendments made by subsection (a) [amending subsec. (a) and adding subsecs. (c) and (d) of section 1816 [now 3732(a), (c) and 3733(a)] of this title] shall take effect on October 1, 1984.”

Pub. L. 98–369, div. B, title V, § 2512(c)(2), July 18, 1984, 98 Stat. 1120, which provided that subsecs. (c) and (d) of section 1816 (now 3732(a), (c) and 3733(a)) of this title would cease to be effective on Oct. 1, 1987, was repealed by Pub. L. 100–198, § 5(b), Dec. 21, 1987, 101 Stat. 1317.

Amendment by Pub. L. 94–324 effective June 30, 1976, see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of this title.

“Net Value” Defined With Respect to Loans Closed Before October 1, 1993

Pub. L. 102–389, title I, Oct. 6, 1992, 106 Stat. 1574, provided in part: “That notwithstanding the provisions of 38 U.S.C. 3732(c)(1)(C) and (c)(11) or any other law, with respect to any loan guaranteed for any purpose specified in 38 U.S.C. 3710 which was closed before October 1, 1993, the term ‘net value’ for purposes of paragraphs (4) through (10) of 38 U.S.C. 3732[(c)] shall mean ‘the amount equal to (i) the fair market value of the property, minus (ii) the total of the amounts which the Secretary estimates the Secretary would incur (if the Secretary were to acquire and dispose of the property) for property taxes, assessments, liens, property maintenance, property improvement, administration, resale (including losses sustained on the resale of the property), and other costs resulting from the acquisition and disposition of the property, excluding any amount attributed to the cost of the Government of borrowing funds’.”