When you, the borrower, contact the loan servicer to request mortgage relief, the Department of Veterans Affairs expects certain responses from the lender. What The VA Lender Must Do When You Ask For Coronavirus Mortgage Relief You should not expect an automatic bailout or relief of any kind where your legally binding mortgage loan contract is concerned. The borrower is required to reach out to the lender for the first six months and then is required to ask again for an additional six months.Īt no time will the forbearance or the extension of a forbearance be automatic. The loan forbearance - which again is a situation where the mortgage payments are not required NOW but will be added back to the loan later - may be extended by an additional six months at the borrower’s request. VA guidelines for this mortgage relief do not stop there. VA loan rules for COVID-19 mortgage relief states that when the borrower makes this request (you MUST reach out to the lender, see below) “the servicer must grant the forbearance request, with no additional documentation.” An Extra Six Months Of VA Loan Forbearance Is Possible This is permitted “regardless of the borrower’s delinquency status.” VA borrowers are permitted to ask for an initial 180-day loan forbearance period. Find out if you’re eligible for this powerful home buying benefit. The VA Home Loan offers $0 Down with no PMI. You only get that by contacting the lender and making the arrangements. But here’s the key thing you need to know–if you do not contact your loan servicer you DO NOT have protection against VA mortgage default and foreclosure. Contact Your Lender To Get Home Loan Reliefĭon’t count yourself out–let the lender make the determination. This loan forbearance applies “regardless of delinquency status.” That means that even if you are convinced that you are about to lose your home, you should contact your lender to request loan forbearance. “A borrower with a VA-guaranteed or VA-held loan, including a Native American Direct Loan or a vendee loan, who is experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request a loan forbearance.” The borrower is required to make the effort to contact their loan servicer:
Mortgage relief program how to#
VA guidelines include instructions for borrowers on how to claim VA mortgage relief. Borrower Must Act To Claim VA Mortgage Relief Lenders are advised that NOT offering such relief to borrowers, “could impact a future claim payment and could lead to other legal or administrative action(s) against the servicer.” In context, the mention of a “future claim payment” refers to the lender trying to file a claim for reimbursement from the VA for a VA mortgage that has defaulted. “The servicer must ensure the borrower has been given every opportunity to pursue all possible loss mitigation options” that could bring a VA mortgage current on their mortgage loans. VA Circular 26-2 0-12, issued on April 8, 2020, directs lenders and borrowers to take specific steps: The Department of Veterans Affairs has directed all participating lenders to provide relief to VA borrowers. VA Guidelines For Lenders During Coronavirus Emergency VA borrowers experiencing financial hardship due to COVID-19 can review VA guidance for borrowers or call 87 for additional information. The VA extended the existing moratorium on evictions and foreclosures until March 31, 2021. What should a homeowner do to avoid loan default and foreclosure on a VA mortgage or refinance loan? There are steps those with VA mortgages should take to save a home at risk and to keep borrower current on their mortgages from becoming at risk of default and foreclosure.
Mortgage relief program license#
Veterans ID on Driver’s License or ID Card by Stateĭo you have a VA mortgage? Are you worried about your ability to make mortgage payments on your VA loan during the coronavirus emergency? Shelter-in-place requirements due to COVID-19 has dramatically affected the ability to pay mortgages and those with VA loans are no exception.Monthly Housing Allowance (MHA) for the GI Bill.Military Spouse Career Advancement Accounts (M圜AA).Online Colleges with Military Discounts.Security Clearance Jobs After the Military.Veterans Employment and Training Service (VETS).10 Veterans Benefits You May Not Know About.Veteran & Military Cell Phone Discounts.