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Saturday, March 30, 2013

VA Loan Foreclosure Facts

It is no coincidence VA loans have the lowest foreclosure rate in the country. Free mortgage counseling and the VA guarantee help make veterans’ mortgages less vulnerable in tough financial climates.

A foreclosure can happen when a borrower defaults or cannot repay a mortgage debt, and the lender chooses to take possession of the property to recover some of the loss. This quick Q &A can help you understand your options and the consequences of foreclosures.

Q: What should I do if I am having trouble making my VA loan payments?

A: VA borrowers facing financial hardship should use the free VA mortgage counselor assigned to their loan. Mortgage counselors are employed by the VA to help you. They are trained to provide sound advice that can assist financially-stressed veterans get back on track and often keep their homes.

VA counselors can work directly with your loan servicer to negotiate repayment plans, forbearance, and even loan modifications – all great home-saving alternatives to foreclosure.

Q: What happens if I just can’t avoid VA loan foreclosure?

A: If foreclosure unavoidable, it may directly affect your VA loan entitlement. If the government suffers any loss as a result of your delinquency, the amount of entitlement that was used for the VA loan cannot be restored until the loss is paid back.

Q: Can I get another VA home loan after foreclosure, and how long will it take?

A: Having a foreclosure in your history doesn’t necessarily disqualify you for a future VA loan. Like bankruptcy, a foreclosure may be disregarded in VA loan qualifying if it happened more than two years ago. Many VA borrowers who have a foreclosure in the past have been able to repair their credit and get another VA home loan. Lenders review applications of potential borrowers with foreclosures in their past on a case-by-case basis. You’ll have to be able to explain the circumstances that led to the hardship. And, as long as you have repaid the loss back to the VA and kept your credit in good standing since the incident, you may be able to qualify again for a VA home loan in the future. Repaying the loss to the VA is important for restoring entitlement needed to get another government- backed loan. How long it takes to qualify again may depend on how soon you recover financially.

For more about VA loans and foreclosure, contact an experienced VA mortgage professional.

My name is Scott Grebner and I have been helping my clients realize their own personal real estate dreams. Real estate is a relationship-based business that works best when client relationships are built on trust and confidence. My goal is having clients be completely satisfied with the professional and caring service they have received.

The role of technology is rapidly changing how the real-estate market functions in this country today. Gerharter Realtors is embracing these new mediums of communication to better serve our customers. We have created our e-family to better place important information in your hands to help you with your housing needs. As a part of Gerharter Enterprises we have access to a broader range of additional services and resources to better assist you. Visit me at my Web Site, Blog, Facebook, Twitter, You Tube or Pinterest. Please check out our helpful resources on Sellers Tips, Buyers Tips, Foreclosure Tips, and Mortgage Tips. For a personal consultation please visit our Office.

It seems that the dream of past generations was to pay off a mortgage. The dream of today’s young families is to get one. I would love to hear from you, about your Real Estate Dreams and questions.

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