All veterans who are facing problems repaying their VA Loans would find it beneficial to speak with their respective loan service providers to consider the different VA loan repayment programs to avoid foreclosure on the property. In general, VA Loan servicers are against foreclosure, as it involves a lot of financial implications and is a lengthy process. Taking into consideration the unique financial strain that is specific to each veteran, the VA loan servicer can offer different options for repayment, such as:
• A revised VA loan repayment program through installments or a new payment schedule.
• Additional time for repaying a VA loan to make up for missed installments or if the borrower is expecting to receive funds soon.
• Extending the foreclosure timeline to allow for a potential opportunity to sell the property which will ensure repayment of the VA loan.
• Borrower voluntarily signing over the deed of property to the servicer to avoid a painful foreclosure process, which also ensures a lower impact on the borrower’s credit rating.
• Servicer allowing the borrower to opt for a VA loan short sale, which means selling at a lower rate than what is actually required to pay off the loan.
In addition to the assistance offered by the servicer, the VA also provides its fair share of help to veterans facing foreclosure. The VA has appointed Loan Technicians in 8 regional centers and has 2 special servicing centers to assist servicers to explore all options to avoid foreclosures. Veterans who are in the VA loan foreclosure listings can call (877) 827-3702 to discuss various ways to avoid foreclosure.
Veterans facing foreclosure can also request assistance in agreement to the Service members Civil Relief Act (SCRA). To be eligible for protection under this act, the obligation should have been initiated before the current period of military service. Under SCRA, veterans may get lower interest rates on the VA loan, or may be able to avoid foreclosure for up to 9 months from the period of military service.
If VA loan foreclosure has been troubling you, VA Loan Captain can assist you to get VA guaranteed home loans with reasonable VA loan repayment programs. To know more, please contact us at www.valoancaptain.com.