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Show I loan Eligibility Restored To Many Veterans C.I. loan eligibility was restored to more than 12,300 veterans and servicemen who itre released from liability from their former loans during 1)75, and the Veterans Administration Ad-ministration is urging others to apply if they believe they may be eligible. Elmer J. Smith, Director of the Veterans Administration Regional Office Off-ice in Salt Lake City says all veterans should request releases re-leases when they sell their home purchased originally rith G.l. loans. "There's a good reason for obtaining a release," Smith explained, "since without it, the seller could be held financially liable should the purchaser default on mortgage payments." It was noted that through December 31, 1975, nearly 9 million veterans and servicemen service-men had received home loans valued at over $118 billion since - the - inception of 1 the ' program. More than half or almost 5 million loans have been repaid. Veterans Administration Admin-istration may grant leases provided the veteran's loan is current, and the prospective purchaser agrees to assume the veteran's liabilities, and the purchaser is a good credit risk with sufficient income to meet assumed mortgage payments. pay-ments. Prior to December 31, 1974, veterans could qualify for restoration of loan eligibility eligibil-ity if Veterans Administration had been relieved of liability and if the property was disposed of for what was described as "compelling reasons." rea-sons." Since that date, however, how-ever, Congress has removed the "compelling reasons" restriction and a veteran's entitlement may now be restored if the property has been disposed of and the loan has been repaid. The law also provides that the original veteran's liability will be removed automatically if another an-other veteran purchases the property and substitutes his loan eligibility for that of the seller, according to Director Smith. |