Do you have a VA loan and wondering about your mortgage forbearance repayment options? While the Veterans Affairs hasn’t released anything directly related to covid and repayment options, they have always worked with homeowners in need. In this video, I discuss the repayment options that we are currently aware of and how to take advantage of those options if you are in need.
New videos 3-5 times per week on Real Estate, Mortgage, Home Buyer Tips and Home Seller Tips – Subscribe for More Real Estate Tips and Real Estate Information – https://goo.gl/NZB1S6
These questions below came directly from an article at FindMyWayHome.com in this article – https://www.findmywayhome.com/coronav…
Does VA offer a COVID-19 Payment Deferral program like Fannie Mae?
Although the VA does not follow FHFA guidance, and does not specifically offer the COVID-19 Payment Deferral option, the VA allows your missed payments to be deferred or become due at the end of the loan with the last payment.
In such cases, VA requires that amount to be non-interest bearing. You can pay toward the deferred amount over the life of the loan to reduce the amount due at the end of the loan, if you refinance, or you sell the home in the future.
What options do I have to catch up on my payment and keep my home?
Contact your mortgage servicer to explore three basic options to make up missed payments and retain your home:
Forbearance: As discussed above, forbearance is a time period that the mortgage servicer agrees to accept reduced payments or no payments.
Repayment plan: If you missed a few mortgage payments, you and your mortgage servicer can agree to terms where you pay a specified amount paid above the regular monthly mortgage payment to bring your loan current over time.
Loan Modification: As mentioned above, a modification may be appropriate, if you resolved or plan to resolve the reason for default and can resume making regular monthly mortgage payments, but you can’t afford to pay the additional amount to make up the missed payments over time. Your mortgage servicer may offer an option to modify your existing mortgage note to extend the term (time to repay) of your loan. Missed payments are included in the loan amount and your new principal balance is amortized (paid off) over the new remaining term of your loan to reduce the burden of repayment. Keep in mind that a loan modification may change your interest rate.
VA Home Loan Modification Options
Traditional Loan Modification – Allows your servicer to permanently modify the terms of your VA mortgage and reinstate the loan to good standing.
Streamline Modification – Allows your servicer to extend permanent payment relief under certain circumstances when you have not submitted a complete loss mitigation application.
VA Affordable Modification (VAAM) – Allows your servicer to help you avoid foreclosure when other traditional home retention options are not feasible. Your servicer may reduce the interest rate and extend the terms to achieve the target monthly PITIA payment.
VA Disaster Modification – Allows your servicer to offer a permanent modification of loan terms to provide payment relief to impacted delinquent borrowers when the borrower has not submitted a complete loss mitigation application. All eligible impacted borrowers should have an opportunity to be considered for a VA Disaster Loan Modification. It is likely that this modification will be used often by Veterans coming out of COVID-19 forbearance.
Disaster Extended Modification – This option allows your servicer to offer permanent payment relief by extending the maturity date, up to 12 months, to impacted delinquent borrowers when the borrower has not submitted a complete loss mitigation application. All eligible impacted borrowers should have an opportunity to be considered for a VA Disaster Loan Modification.
If you have additional questions about VA mortgage forbearance, please comment below or contact me directly.
Thank you for watching.
Connect with me: