Department of Veterans Affairs v. Duerksen

Opinion

SPARKS, J.

The central issue here is whether the holding of Wellenkamp v. Bank of America (1978) 21 Cal.3d 943 [148 Cal.Rptr. 379, 582 P.2d 970], applies to Cal-Vet contracts. We hold that it does not.

In this case a veteran purchasing a home from the Department of Veterans Affairs (Department) under a Cal-Vet contract seeks to sell the home to another before having paid the contract in full. The Department, while acknowledging that the sale poses no risk to its security interest in the property, claims authority to prevent the sale and accelerate the veteran’s debt under his contract.…