A VA loan is a loan that is backed by the U.S. Department of Veterans Affairs that guarantees veterans and eligible military spouses an opportunity to buy a house for no down payment without having to pay mortgage insurance. As with other mortgages, there is always a risk that a borrower taking a VA loan may face foreclosure. VA loans are supposed to be more advantageous for those who qualify because under the program, there are numerous protections that are supposed to help veterans who are having financial trouble avoid foreclosure.
One helpful feature of the VA loan is the availability of free mortgage counselors for borrowers who are having trouble making payments and are at risk of foreclosure. VA mortgage counselors may be able to help a borrower with financial advice, as well as negotiate repayment and modification plans with the borrower’s mortgage servicer. Borrowers may also be able to make use of the VA’s special forbearance program that can keep foreclosure at bay for a while if the borrower is expecting some money that would help them catch up on their payments.
Additionally, homeowners with a VA loan can also seek a VA Interest Rate Reduction Refinance Loan, which can in some cases reduce overall monthly mortgage payments, therefore giving the borrower a chance to catch up. There are no out-of-pocket closing fees associated with this type of refinancing if they are rolled into the loan, which is an option. For borrowers with fixed rate VA loans, this could be a good way to reduce rates, however, borrowers with adjustable rate mortgages may have to determine if their interest rates would go up and make an informed decision.
Active duty service members may also be able to receive assistance in temporarily halting their mortgage payments by using the Servicemember Civil Relief Act. Under this law, members of the military may also be able to suspend foreclosure proceedings for a period of time while they are on active duty. If the service member is able to successfully apply the law to their foreclosure proceedings, they may be able to avoid default judgments and other adverse rulings against them caused by their inability to defend themselves while serving their country simultaneously. Additionally, under the law, the time of the service member’s active duty is not included in a statute of limitation calculation to reclaim or redeem a home after a foreclosure sale. Note that under Florida’s law, there is no right of redemption. A homeowner has an opportunity to redeem their home at any time between the final order of foreclosure and the issuing of a Certificate of Sale to a new seller.
If you have a VA loan and are struggling to make your mortgage payments, you should make sure that you explore all the options available to you to save your home.
Contact A North Miami Foreclosure Defense Attorney
If you are facing foreclosure as a result of unpaid homeowner association fees or missed mortgage payments, it is important to seek an experienced foreclosure defense attorney to protect your interests. Contact the North Miami foreclosure attorneys at Charlip Law Group, L.C. for a consultation on your case.
