My VA Loan Defaulted, Now What?
If you’re facing financial hardship and are worried that you’ll lose your home, you may find there are options still available to you. If your one of the thousands of Americans with VA loans, there are things you can do to avoid foreclosure and bring your loan back into good standing.
VA home loans do come with a number of options to help people out of default situations. It is important, however, to contact the lender or servicer as quickly as possible and explain the reason for default or anticipated default. If a loan falls three payments behind, the holders of VA home loans are required to contact the VA directly. The VA will contact you and try to work directly with you to remedy the situation.
Some of the options that are available to those with VA loans include:
Payment of the delinquency – Lenders who write VA loans are almost always required to accept full payment of the delinquency and to reinstate loans after this has been done. Borrowers may have to pay legal costs if the delinquency has led to bankruptcy proceedings, however.
Forbearance – Lenders who offer VA home loans are also able to offer a forbearance of the delinquent amount. This will result in a higher monthly payment for a short period of time to catch up the delinquency. Lenders may also agree to suspend payments for a short period of time if a crisis situation is demonstrated.
Payment help – While the VA does not offer payment assistance, many states and charities do. The VA can help borrowers locate these programs that can help cover the costs of mortgage payments during a crisis situation.
Reamoritzation – This essentially reworks a loan to bring it back to date. The late payments and owed interest are added to the loan and payments will rise as a result.
Sale – If there is no way to work out a way to save a home, a private sale instead of foreclosure is a route worth exploring. This can preserve credit and result in a favorable situation for both the borrower and the lender.
Deed in lieu of foreclosure – Under this option, the VA will accept the deed to the home in exchange for stopping foreclosure.
VA Refunding – In some cases, the VA will refund the loan to enable a homeowner to preserve ownership of the property.
To help the VA work with you to preserve VA home loans, make sure to have a few things ready when you speak with administration representatives. You will want to be able to:
· Explain the reason for the default
· Explain the employment and financial situation for the household
· State your intent of keeping the property or letting it go
VA mortgage rates are among some of the very best in the industry, but the agency does understand that financial crisis situations do occur. It will work with homeowners and lenders to find a solution that benefitseveryone if at all possible.
To find out more about VA loan rates and mortgages, just explore our website further. If you’re ready to apply for a loan, use our convenient 30-second request form to get started. At MyVaRefinance.net, we’re here to assist you every step of the way.
VA home loans do come with a number of options to help people out of default situations. It is important, however, to contact the lender or servicer as quickly as possible and explain the reason for default or anticipated default. If a loan falls three payments behind, the holders of VA home loans are required to contact the VA directly. The VA will contact you and try to work directly with you to remedy the situation.
Some of the options that are available to those with VA loans include:
Payment of the delinquency – Lenders who write VA loans are almost always required to accept full payment of the delinquency and to reinstate loans after this has been done. Borrowers may have to pay legal costs if the delinquency has led to bankruptcy proceedings, however.
Forbearance – Lenders who offer VA home loans are also able to offer a forbearance of the delinquent amount. This will result in a higher monthly payment for a short period of time to catch up the delinquency. Lenders may also agree to suspend payments for a short period of time if a crisis situation is demonstrated.
Payment help – While the VA does not offer payment assistance, many states and charities do. The VA can help borrowers locate these programs that can help cover the costs of mortgage payments during a crisis situation.
Reamoritzation – This essentially reworks a loan to bring it back to date. The late payments and owed interest are added to the loan and payments will rise as a result.
Sale – If there is no way to work out a way to save a home, a private sale instead of foreclosure is a route worth exploring. This can preserve credit and result in a favorable situation for both the borrower and the lender.
Deed in lieu of foreclosure – Under this option, the VA will accept the deed to the home in exchange for stopping foreclosure.
VA Refunding – In some cases, the VA will refund the loan to enable a homeowner to preserve ownership of the property.
To help the VA work with you to preserve VA home loans, make sure to have a few things ready when you speak with administration representatives. You will want to be able to:
· Explain the reason for the default
· Explain the employment and financial situation for the household
· State your intent of keeping the property or letting it go
VA mortgage rates are among some of the very best in the industry, but the agency does understand that financial crisis situations do occur. It will work with homeowners and lenders to find a solution that benefitseveryone if at all possible.
To find out more about VA loan rates and mortgages, just explore our website further. If you’re ready to apply for a loan, use our convenient 30-second request form to get started. At MyVaRefinance.net, we’re here to assist you every step of the way.
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