My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn’t my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility cannot be restored. Why? Or, My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why? The government suffers a financial loss in both cases, even though VA waives the debt of the veteran. The restoration of the utilized part of the veterans eligibility is not permitted by law unless the loss is fully repaid.