Home Foreclosures: 6.3.3.2 Foreclosure Prevention Claims and Defenses Based on Lender’s Failure to Comply with VA Servicing Guidelines
Failure to comply with VA servicing guidelines has been raised as a defense in foreclosure proceedings or asserted in affirmative actions to stop foreclosure in non-judicial foreclosure states.343 If at all possible, claims or defenses should be linked to a regulation or statute, although many courts have also found the VA Servicer Handbook and Circulars to be binding. These claims and defenses are available in addition to all other claims available under state and federal law, including claims under RESPA Regulation X.