Having trouble paying your VA loan? You have until July 2023 to request compensation
There is relief available, but you will have to ask for it.
- Many landlords struggle to keep up with their payments.
- VA loan borrowers receive an extension to apply for assistance.
At this point in the pandemic, the US economy is in a much stronger position than it was at the start of the outbreak. Not only have many jobs been added to the economy, but the unemployment rate has fallen significantly, to the point where it is now at its lowest since the start of the crisis.
Despite this, many landlords are still struggling to keep up with their housing payments, especially in light of recent runaway inflation. Unfortunately, falling too far behind on a series of mortgage payments could have disastrous consequences, namely foreclosure.
If you have a VA loan, the good news is that you can explore different options for applying for relief that could allow you to stay in your home, despite your inability to pay your mortgage in its current state. And now you will have even more time to do so.
Get the mortgage help you need
It is in mortgage servicers’ best interests to work with distressed borrowers and help them stay in their homes. Foreclosure is not a particularly attractive option for loan servicers because it can be costly and time-consuming. And for borrowers, foreclosure doesn’t just mean losing a home. It can also mean significant damage to the credit score that makes buying a new home difficult for many years.
Fortunately, there are a host of relief options available for VA loan holders who are struggling to pay their mortgages. And now those borrowers are given extra time to seek help.
Initially, the VA was going to give pandemic-affected borrowers until April 1, 2022 to apply for relief. Now the VA has extended that deadline to July 1, 2023, giving borrowers an additional 15 months to apply for help.
The VA also said it is committed to helping borrowers who have experienced financial difficulties to stay in their homes. Those seeking help can ask their lending services to enter a special forbearance period (where mortgage payments are suspended) or to change the terms of their mortgages to make them more manageable.
All mortgage borrowers should seek redress
It’s great that VA loan managers want to help borrowers stay home, and that option isn’t limited to those with a VA mortgage. Conventional mortgage holders can also talk to their loan servicers about options that might allow them to stay in their home.
The reality is that many people still have a long way to go to recover from the pandemic. Even though jobs are now more plentiful, some people may still be in the process of finding full-time employment or earning their old salary. Asking for help with a mortgage is something every struggling homeowner should do, whether they have a VA loan or have used a different method to finance a home purchase.
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