Veteran Home Foreclosure
What is a Veteran Home Foreclosure?
A veteran home foreclosure may occur when a military veteran or immediate family member of a military veteran experiences a hardship which contributes to home foreclosure.
When a veteran homeowner misses one or more mortgage payments, the mortgage lender may choose to consider the loan in default. Once the loan goes into default, the mortgage lender is typically responsible for contacting the homeowner to understand the cause for default and explore potential options for bringing the loan current.
If the delinquent mortgage loan is not brought current before two mortgage payments have been missed, the mortgage lender or loan servicer is required to notify the Veterans Administration the loan is in default. The U.S. Department of Veterans Affairs encourages all veterans with mortgage payment problems to contact their lenders as soon as possible in order to explore options for avoiding home foreclosure.
Help for a Veteran Home Foreclosure
Help for a veteran home foreclosure may be available in a number of ways. Several potential options to help a veteran avoid home foreclosure may include:
- Repayment Plan – A repayment plan typically works by setting up a monthly payment plan whereby the regular monthly mortgage payment has a percentage of the missed mortgage payments added onto it.
- Forbearance – A forbearance typically works by formulating an agreement with the mortgage lender to temporarily delay the foreclosure process while the homeowner tries to bring the mortgage loan current.
- Loan Modification – A loan modification typically works by modifying the original terms of the mortgage agreement. By modifying the loan agreement, homeowners may be able to add the missed mortgage payments to the back of the loan and negotiate for reduced interest and/or monthly mortgage payments.
- Additional time – Homeowners may negotiate with mortgage lenders to delay foreclosure for additional time in order to sell the home if the sale will pay off the unpaid mortgage balance.
- Short Sale – A short sale may occur when a mortgage lender agrees to allow the homeowner an opportunity to sell the home for less than the remaining balance on the mortgage loan. This is often a better option for homeowners and lenders than following through with the foreclosure process.
- Deed in Lieu of Foreclosure – A deed in lieu of foreclosure may occur when a mortgage lender agrees to accept the deed to the property in lieu of completing the foreclosure process.
Professional Veteran Home Foreclosure Help
In some veteran home foreclosure cases, it may be within the best interest of a homeowner to enlist the help of a professional foreclosure defense company for help avoiding foreclosure. The U.S. Department of Veterans Affairs may become backlogged from its high volumes of claims and paperwork.
If this occurs, a veteran homeowner may lose his or her home before the Veterans Affairs agency is able to take action. For this reason, veteran homeowners may wish to consider speaking with an experienced foreclosure defense attorney to explore options to avoid foreclosure.