Help is available if you are having difficulty making your VA home loan payments.
If you are having difficulty making your mortgage payments on your VA loan because of the pandemic, you have special help available to you as a veteran.
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) offers a mortgage forbearance option to all borrowers who are in financial difficulty due to the national COVID-19 emergency.
Forbearance is just a fancy word for an agreement between you and your lender that changes your existing payment schedule, either by suspending or reducing payments for a certain length of time.
Forbearance allows you to solve short-term financial problems by delaying or reducing your monthly mortgage payments until you get back on your feet and update your mortgage payments.
Since a VA loan is guaranteed by the federal government, the company that issued the loan MUST grant you forbearance if you request it. No proof of your financial hardship is required other than your statement. The Federal Housing Administration, the US Department of Agriculture, and all other federally guaranteed loans are also covered by this rule.
If you are having difficulty making your mortgage payments, you should immediately contact your lender and explain your situation to them to try and work out a payment plan that works for both of you.
As with anything related to money, be sure to put everything in writing. For example, if you call your mortgage company and they agree to a six-month payment suspension without penalty, make sure you receive an email or letter from them stating this fact. Otherwise, you risk having to pay late payments or, worse yet, having your mortgage foreclosed.
Under the CARES Act, you are allowed to request an initial forbearance from monthly mortgage payments for up to 180 days, and can request up to an additional 180 days after the expiration of the first period. The lender must approve the forbearance for the amount and duration you request.
Remember that forbearance doesn’t stop you from paying your mortgage, it only delays it. So, you really shouldn’t ask for a longer forbearance than necessary.
In addition, the CARES law does not change your credit report. If you were in default on your mortgage before you applied for forbearance, you will remain in default until your payments are up to date.
the Department of Veterans Affairs expects large numbers of veterans to fall behind on their mortgage payments and recently updated its computer systems to handle up to 5,000 foreclosures per day.
Avoiding foreclosure should always be your goal. To this end, the VA has a lot of help available. This assistance is available to all veterans and their survivors. spouses, even if they don’t have a VA guaranteed loan. The VA provides financial advice and will even act as a liaison between you and your mortgage company to strike a fair deal.
The VA can also help you avoid financial scams, some of which may offer to make mortgage payments for you, but could end up costing you more in the long run or even entice you to sell your home.
If you have questions about the credibility of such offers, or if you are having trouble making your payments and do not want to contact your lender, the AV wants you to call them for help as soon as possible.
You should contact the VA at 877-827-3702 for more information.
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