United States v. William Schmittmeyer

Appellant William Schmittmeyer purchased a home in East Brunswick, New Jersey on May 21, 1955, taking out a mortgage loan from the First Savings & Loan Association of East Paterson, New Jersey which was guaranteed by the Veterans Administration. He defaulted in his payments on the mortgage in November 1955, whereupon the bank instituted foreclosure proceedings. The bank submitted a claim to the Veterans Administration, which paid the claim and took title to the property on September 19, 1956.

The amount which the Administration fixed as the value of the property was insufficient to cover the…