Vail v. Derwinski

LAY, Chief Judge.

This case involves a class action brought by military veterans who purchased homes under the VA home loan guaranty program. The district court1 granted summary judgment to the class and enjoined the VA from obtaining a deficiency from the veterans under the VA’s right of indemnity when the VA orders non-judicial foreclosure on VA home loans in Minnesota. 742 F.Supp. 1039. The plaintiff class members either defaulted on their loans or sold their homes to buyers who assumed the VA loan and then defaulted.2 The private lenders then foreclosed and collected any deficiencies from…