In honor of our United States Veterans, we have the GI Bill, through which the Veterans Administration provides 100% mortgage insurance to the lender on the veteran’s home loan! Wow! What a deal for the lender and the mortgagor (the veteran). It’s because of GI Bill that veterans can avoid foreclosure.
This blog is about the Veteran Administration’s foreclosure alternative for our GI’s. Thank you for your service!
First of all, if you do not have a mortgage backed by the VA, then the following does not apply to you. It may be interesting to read, but your lender is not tied to these rules for your loan, unless your loan is a VA loan. You can find out how to avoid foreclosure at how-to-stop-foreclosure !
How Veterans Can Avoid Foreclosure
If you have a VA Mortgage and get 60 days behind on payments your lender is supposed to contact you to go over your situation and try to set you up on a new payment plan if possible. The new payment plan options will depend on the following criteria:
- Reason for missing payments
- What is your current financial situation
- Reason for your current financial situation
- How long will the current financial situation continue?
- Amount of Equity in Your Property
- Is it worth more than you owe?
- How much more is it worth?
- How much have you paid off?
- Lack of Equity in your Property
- Do you owe more than it’s worth? (aka: “upside down” or “under water”)
- Will you be able to make payments again ?
- How soon will you be able to make payments?
- How much can you pay?
- Are you employed?
- Are you still living in the property?
- Are you renting out the property?
Even before you start missing payments you can call your lender and discuss these points with them. Veterans can avoid foreclosure if you remind them that your mortgage is a VA loan and that the VA requires the lender to work with you in times of distress.
Veterans, you do have options! What are your options? For up-to-date information go to theVA Website.
My name is Grace Widdicombe, your Discreet Pre-Foreclosure Advocate and I am looking forward to your questions. Please call me at 541-833-0223, or email me at gratefulnuts@gmail.com