VA Updates Maximum Allowable Fees for Foreclosure Legal Services
The Department of Veterans Affairs (VA) has announced updated maximum allowable fees for legal services related to foreclosures, effective September 11, 2025. These changes impact attorneys representing VA in foreclosure actions and aim to account for additional work required in specific circumstances, such as bankruptcy filings or restarts due to unforeseen events. The updated fee schedule, published electronically, provides clarity and structure for legal costs associated with protecting the VA’s financial interests in property foreclosures.
These adjustments are crucial for both the VA and legal professionals involved in foreclosure proceedings. The revised fee structure addresses scenarios involving bankruptcy, property damage, natural disasters, and other delays, ensuring fair compensation for necessary legal work. The changes impact attorneys handling VA foreclosure cases nationwide, with specific considerations for regions like Western and Eastern New York. Understanding these updated guidelines is essential for accurate billing and compliance with VA regulations.
The VA establishes the following maximum allowable fees:
* Base foreclosure Attorney Fee: $400
* Restart Fee (following unavoidable delay): An additional $400, in addition to the base fee.
* Chapter 7 Bankruptcy Filing: $1,050
* Initial Chapter 13 Bankruptcy Filing: $1,500
* Subsequent bankruptcy Filings (Chapter 7 or 13): An additional $600 per filing.
* Regional Variations: Fees may vary based on location, specifically within New York State, with different rates applying to Western and Eastern counties.
The VA clarifies that the $400 restart fee applies when a foreclosure is halted due to circumstances beyond control – including bankruptcy, VA-requested delays, property damage, hazardous conditions, condemnation, natural disaster, property seizure, or relief under the Servicemembers Civil Relief Act – and than resumed.For multiple bankruptcy filings, VA will allow an additional $600 per filing under either chapter, nonetheless of whether a bankruptcy release is obtained.
The Western Counties of New York are defined as Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, steuben, Wayne, Wyoming, and Yates.The remaining counties within New York are considered Eastern New York.
Douglas A. Collins, Secretary of veterans Affairs, approved the document, and Taylor N. Mattson, Alternate Federal Register Liaison Officer, authorized its publication.
