B-128214, SEP. 17, 1956

B-128214, SEP. 17, 1956

TO MR. HENRY L. WITHAM:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 2, 1956, RELATIVE TO THE MATTER OF YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $2,173.22 ARISING AS THE RESULT OF YOUR DEFAULT UNDER LOAN NO. LHG 57098- MASS. MADE WITH THE CAPE ANN SAVINGS BANK, GLOUCESTER, MASSACHUSETTS, AND GUARANTEED BY THE VETERANS ADMINISTRATION PURSUANT TO THE PROVISIONS OF TITLE III OF THE SERVICEMEN'S READJUSTMENT ACT OF 1944, AS AMENDED, 38 U.S.C. 694 AND FOLLOWING SECTIONS. YOU ADVISED IN YOUR LETTER THAT YOU WERE FINANCIALLY UNABLE TO PAY THE AMOUNT OWED AND REQUESTED THAT FURTHER ACTION AGAINST YOU BE DELAYED UNTIL YOU COMMUNICATED WITH YOUR CONGRESSMAN.

YOU ARE ADVISED THAT OUR OFFICE IS IN RECEIPT OF A LETTER FROM CONGRESSMAN WILLIAM H. BATES ENCLOSING YOUR LETTER TO HIM AND REQUESTING A REVIEW OF THE MATTER AND ADVICE AS TO WHETHER THE DEBT COULD BE RETIRED ON A TIME BASIS IF IT CANNOT BE CANCELLED.

OUR OFFICE REQUESTED INFORMATION FROM THE VETERANS ADMINISTRATION REGIONAL OFFICE AT BOSTON, MASSACHUSETTS, CONCERNING THE MANNER IN WHICH THE INDEBTEDNESS WAS INCURRED AND ALSO WHETHER THE CASE HAD BEEN CONSIDERED FOR WAIVER. IN CORRESPONDENCE RECENTLY RECEIVED FROM THAT OFFICE WE ARE ADVISED THAT A LOAN OF $8,000 WAS MADE TO YOU ON JUNE 9, 1948, BY THE CAPE ANN SAVINGS BANK, GLOUCESTER, MASSACHUSETTS, FOR THE PURPOSE OF PURCHASING A HOME WHICH LOAN WAS GUARANTEED BY THE VETERANS ADMINISTRATION UNDER THE SERVICEMEN'S READJUSTMENT ACT OF 1944 SUPRA. AFTER DEFAULT BY YOU IN THE PAYMENTS THE PROPERTY WAS FORECLOSED BY THE BANK IN SEPTEMBER 1950, AND THEREAFTER THE VETERANS ADMINISTRATION PAID THE BANK THE TOTAL SUM OF $8,585.38 TO ACQUIRE TITLE TO THE SUBJECT PROPERTY. YOU RECEIVED A CREDIT OF $6,400, REPRESENTING THE PROCEEDS OF THE FORECLOSURE SALE, LEAVING A DEFICIENCY OF $2,185.38. SUBSEQUENT THERETO YOU WERE CREDITED WITH TWO INSURANCE REBATES OF $10.21 AND $1.95 REDUCING THE INDEBTEDNESS TO $2,173.22. WE WERE ADVISED ALSO THAT YOUR CASE WAS CONSIDERED BY THE REGIONAL OFFICE LOAN GUARANTY COMMITTEE ON WAIVERS AND COMPROMISES WITH THE FOLLOWING FINDING:

"* * * "NOT INEQUITABLE OR AGAINST GOOD CONSCIENCE TO COLLECT INDEBTEDNESS. A REASONABLE REPAYMENT SCHEDULE WHEREBY THE VETERAN COULD ELIMINATE THIS DEBT WOULD NOT WORK ANY UNDUE HARDSHIP UPON HIM.'"

IT IS NOTED IN YOUR CORRESPONDENCE TO OUR OFFICE AND TO CONGRESSMAN BATES THAT YOU STATE YOU ARE FINANCIALLY UNABLE TO MAKE ANY PAYMENTS ON THIS INDEBTEDNESS. IT IS NOT CERTAIN, HOWEVER, WHETHER YOU HAVE CONSIDERED TENDERING A COMPROMISE OFFER IN AN AMOUNT LESS THAN THE STATES INDEBTEDNESS WHICH THE VETERANS ADMINISTRATION MAY CONSIDER UNDER ITS AUTHORIZATION TO SO COMPROMISE THESE CLAIMS PROVIDED IN SECTION 509 OF THE SERVICEMEN'S READJUSTMENT ACT OF 1944, AS AMENDED, 38 U.S.C. 694J. SUCH AN OFFER, IF ACCEPTED, WOULD OPERATE IN FULL SATISFACTION OF THE DEBT.

IT IS REQUESTED, THEREFORE, THAT YOU ADVISE OUR OFFICE AS TO WHETHER YOU ARE ABLE TO MAKE SUCH AN OFFER OF COMPROMISE AND THE AMOUNT WHICH YOU WOULD BE ABLE TO RAISE FOR THIS PURPOSE. UPON RECEIPT OF SUCH ADVICE FROM YOU WE SHALL REFER THE MATTER TO THE VETERANS ADMINISTRATION FOR CONSIDERATION. ALSO OUR OFFICE WILL BE GLAD TO CONSIDER ANY REASONABLE ARRANGEMENT YOU MAY WISH ..END :