Sure, qualifying for a VA home loan when economic times were good was doable. But, some military families with VA loans from four or five years ago may have lost the financial stability necessary to maintain their monthly mortgage payments. If facing VA loan default, military members have a place to turn.
Nine VA Regional Loan Centers across the country are staffed with knowledgeable mortgage counselors who can help military families keep their homes. The mission of these VA-managed loan centers is to help veterans and active duty military personnel purchase and retain homes. Not only can they assist military members in obtaining VA loans, but they can also help borrowers in default.
Qualified loan counselors employed by the VA can help discuss the reasons why you are in default, ways to improve your current financial/employment situation and ways to work with your loan servicer to avoid the dreaded “f” word — FORECLOSURE. Some of these ways include:
- Getting current on your payments (reorganizing your current budget to make payments)
- Forbearance (a payment plan for the amount of delinquency owed)
- Getting payment assistance
- Re-amortization (adding default amount to your loan for higher balance and payments)
- Private sale (for homeowners who don’t want to keep their homes)
- Deed in lieu of foreclosure (VA owns your property)
- Refunding (VA buys your loan)
It’s no wonder the VA home loan program has the lowest foreclosure rate in the country. This can be attributed to two things: the general responsible character of military members, and the free mortgage counseling resources available to each VA borrower.
So, if you’re experiencing financial distress, know that help is available to you. For more information for borrowers in default, contact the VA Regional Loan Center associated with your loan.
Ashleigh Downing is the Social Media Director for iFreedom Direct. She has been working with and writing about veteran’s benefits and issues for the past three years.
iFreedom Direct is a top national VA lender that specializes in assisting active members and retired veterans of the Armed Forces with VA loans.