1. (a) When the Home Loan Division accepts an offer, it shall notify the bidder by sending an “Offer Acceptance and Request For Down Payment” letter as soon as possible so that the sale process can begin. If for any reason the bidder fails to complete the purchase transaction, then the next highest acceptable offer (bid) shall be selected. In the case of a tie in the acceptable offers received, the Home Loan Division shall give preference to bidders in the following order:

   1. (1) Veterans as defined in section 980 of the California Military and Veterans Code;
   2. (2) Any other person serving in or honorably discharged from the United States armed forces;
   3. (3) Any person who is a first-time home buyer;
   4. (4) Any other person;
   5. (5) CalVet employee.
2. (b) First-time home buyers are defined as persons who have had no ownership interest in their principal residences at any time during the 3-year period ending on the date their mortgage on the repossessed property is executed.

3. (c) In cases where the highest acceptable offer (bid) on a repossessed property is for an amount below market value, then the final offer acceptance decision shall be made by the Division. The Home Loan Division shall consider the following in making the final decision:

   1. (1) The annual gains or losses to CalVet due to the repossession activity;
   2. (2) The condition of the property; and
   3. (3) Current real estate market conditions.

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Sections 985.2, 987.6, 987.51, 987.78(a) and 987.78(b), Military and Veterans Code; and Section 143(d)(1), Title 26, United States Code Annotated.

History

1. New section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).

2. Amendment filed 3-24-2026; operative 7-1-2026 (Register 2026, No. 13).