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B-154496, SEP. 17, 1964

B-154496 Sep 17, 1964
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IT HAD BEEN YOUR CONTENTION IN PRIOR CORRESPONDENCE THAT UNDER AN AGREEMENT ALLEGED TO HAVE BEEN MADE BETWEEN THE MORTGAGEE AND SERGEANT WEBB HE WAS TO HAVE BEEN NOTIFIED OF ANY DEFAULT SUBSEQUENT TO THE TIME HE SOLD THE HOUSE. NOW YOU CONTEND THAT THIS AGREEMENT WAS NOT WITH THE MORTGAGEE BUT WITH VETERANS ADMINISTRATION AND IN SUPPORT OF THIS YOU POINT OUT THAT SERGEANT WEBB WAS NOTIFIED BY VETERANS ADMINISTRATION OF AN EARLIER DEFAULT BY THE TRANSFEREE IN 1959. YOUR LETTER ALSO CONTENDS THAT WHEN SERGEANT WEBB APPLIED FOR A SUBSEQUENT LOAN FROM VA IN MARCH 1962 AT THE OKLAHOMA REGIONAL OFFICE HE WAS ADVISED "THAT THEY WOULD SECURE A RELEASE FROM THE VETERANS ADMINISTRATION IN FLORIDA SO THAT THEY COULD MAKE HIS LOAN HERE.'.

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B-154496, SEP. 17, 1964

TO MR. ROBERT H. SHERMAN:

YOUR LETTER OF AUGUST 24, 1964, HAS BEEN TREATED AS A REQUEST FOR RECONSIDERATION OF OUR DECISION TO YOU OF JULY 9, 1964. THE DECISION SUSTAINED OUR CLAIMS DIVISION SETTLEMENT DATED APRIL 15, 1964, RELATING TO THE INDEBTEDNESS OF YOUR CLIENT, TECHNICAL SERGEANT JACK L. WEBB,509 W. 2ND STREET, PITTSBURG, KANSAS, IN THE AMOUNT OF $1,119.44, PLUS INTEREST.

IT HAD BEEN YOUR CONTENTION IN PRIOR CORRESPONDENCE THAT UNDER AN AGREEMENT ALLEGED TO HAVE BEEN MADE BETWEEN THE MORTGAGEE AND SERGEANT WEBB HE WAS TO HAVE BEEN NOTIFIED OF ANY DEFAULT SUBSEQUENT TO THE TIME HE SOLD THE HOUSE. NOW YOU CONTEND THAT THIS AGREEMENT WAS NOT WITH THE MORTGAGEE BUT WITH VETERANS ADMINISTRATION AND IN SUPPORT OF THIS YOU POINT OUT THAT SERGEANT WEBB WAS NOTIFIED BY VETERANS ADMINISTRATION OF AN EARLIER DEFAULT BY THE TRANSFEREE IN 1959. YOUR LETTER ALSO CONTENDS THAT WHEN SERGEANT WEBB APPLIED FOR A SUBSEQUENT LOAN FROM VA IN MARCH 1962 AT THE OKLAHOMA REGIONAL OFFICE HE WAS ADVISED "THAT THEY WOULD SECURE A RELEASE FROM THE VETERANS ADMINISTRATION IN FLORIDA SO THAT THEY COULD MAKE HIS LOAN HERE.'

THE REASON FOR GIVING NOTICE TO SERGEANT WEBB AT THE TIME OF THE FIRST DEFAULT WAS EXPLAINED IN A LETTER FROM THE ST. PETERSBURG REGIONAL OFFICE OF THE VETERANS ADMINISTRATION DATED JANUARY 14, 1964, AND ENCLOSED WITH OUR CLAIMS DIVISION SETTLEMENT OF APRIL 15, 1964. ANOTHER COPY OF THE VETERANS ADMINISTRATION LETTER IS ENCLOSED FOR YOUR FURTHER REFERENCE. YOU WILL NOTE THAT NO MENTION IS MADE OF ANY AGREEMENT EITHER WITH THE MORTGAGEE OR WITH VETERANS ADMINISTRATION TO GIVE SERGEANT WEBB NOTICE. SINCE YOU HAVE SUBMITTED NO EVIDENCE THAT A NOTICE AGREEMENT EXISTED WE MUST ACCEPT THE STATEMENT OF THE VETERANS ADMINISTRATION THAT THE ONLY REASON NOTICE WAS GIVEN ON THE EARLIER OCCASION WAS BECAUSE OF THE ADMINISTRATION POLICY THAT THIS BE DONE WHEN FEASIBLE.

PLEASE NOTE, ALSO, THAT NO MENTION IS MADE IN THE ENCLOSED LETTER OF ANY "RELEASE" IN CONNECTION WITH A SUBSEQUENT LOAN BY SERGEANT WEBB. EVIDENCE OF A RELEASE WAS SUBMITTED BY YOU AND THERE IS GRAVE DOUBT THAT ANY SUCH RELEASE FROM LIABILITY WOULD BE VALID SINCE IT WOULD BE INCONSISTENT WITH THE LAW AND REGULATIONS AS OUTLINED IN OUR DECISION OF JULY 9, 1964.

THE CHANGE IN LAW TO WHICH YOU REFER IN YOUR LETTER APPARENTLY IS THAT PART OF PUB.L. 85-857, 72 STAT. 1212, WHICH IS CONTAINED IN 38 U.S.C. 1817. THAT LAW BECAME EFFECTIVE SEPTEMBER 2, 1958, BUT IS NOT A BLANKET RELEASE OF LIABILITY FOR TRANSFERORS. ONLY WHEN CERTAIN QUALIFICATIONS ARE MET, AMONG THEM THAT THE TRANSFEREE WILL ASSUME ALL OBLIGATIONS OF THE TRANSFEROR AND THAT THE TRANSFEREE QUALIFIES FROM A CREDIT STANDPOINT, WILL SUCH A RELEASE BE GRANTED. AT THE TIME OF THE TRANSFER IN QUESTION NO APPLICATION FOR SUCH A RELEASE WAS MADE AND NONE WAS GRANTED TO SERGEANT WEBB. THE STATUTE IS THEREFORE INAPPLICABLE IN THIS CASE.

THE STATEMENTS IN YOUR LETTER HAVE BEEN CAREFULLY CONSIDERED AND THERE ARE FOUND NO ADDITIONAL FACTS WHICH WOULD WARRANT MODIFICATION OF THE DECISION OF JULY 9, 1964. ACCORDINGLY, THE DECISION, UPON RECONSIDERATION, IS SUSTAINED. A DEFINITE PLAN FOR SETTLEMENT SHOULD BE SUBMITTED IMMEDIATELY.

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