In the midst of financial troubles, you would still want to hold onto your home. Losing it to foreclosure is painful, it’s not good for your credit score and only adds to your financial woes. If you are having a hard time meeting your monthly payments on your VA mortgage or have crossed the line toward delinquency, you can take these actions.
Where to Seek Assistance
The first step is to contact the lender/loan servicer. Let them know that you’re having trouble with your current loan. Loan servicers, according to the VA, are in charge of resolving repayment issues, including delinquencies and loan defaults.
You can also speak with a VA Loan Service Representative or a VA Loan Technician with a VA Regional Loan Center near you. He/she offers assistance via financial counseling that could shed light to your current mortgage troubles. To reach a Loan Service Rep, call 1-877-827-3702.
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Way/s Out of Foreclosure
Foreclosure is out of the question. Notwithstanding qualified advice from the VA professional or your loan servicer above, these are options available for those borrowers nearing or in delinquency.
1. Loan modification. A
fresh start so to speak, you can request to modify your current loan terms so you can continue repaying your debt. Examples are lowering your current rate so you can afford your monthly payments, lengthening your current loan term, or both. Loan modification programs usually have a trial repayment period to test if the borrower is able to make the modified payments.
2. Repayment plan. Under this method, you may be allowed to make a regular installment payment and a portion of some of your missed payments every month.
3. Short sale. The loan servicer allows the property to be sold for less than what you owed on your mortgage.
4. Deed-in-lieu-of-foreclosure. You agree to deed your property, convey your interest in it to your loan servicer, instead of losing the property to foreclosure.
5. Special forbearance. The lender reinstates your loan and essentially gives you time to make regular payments while delaying payment of missed installments.
Our lenders can answer your questions about VA loans here.
At your request, the loan servicer can permit you to consummate a private sale of your property instead of foreclosure for as long as you pay off your mortgage in full.
Relief from foreclosure may be available to you under the
Servicemembers Civil Relief Act if you have taken out your mortgage before your active service.
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