If you have a VA loan, the U.S. government has options in place to assist you in case of financial hardship. There are multiple programs available to help you avoid late payments and foreclosure if your mortgage meets eligibility. Here are the major veteran mortgage relief options to know:
A refund modification affects the principal and interest on your existing VA loan. This option allows the Department of Veteran Affairs to purchase any past-due payment and principal loan balance, given the amount falls within certain limits. Refund modification can result in an overall reduction of both principal and interest by up to 20%.
A partial claim program helps cover you in a scenario where you can make current payments, but have accrued a past-due balance. With a partial claim option, you can resume your regular monthly payments again as soon as you're financially able, while any unpaid late payments are taken over by the VA. You'll owe the amount at the end of the mortgage, but it will not accrue interest while the VA holds it.
Loan deferment is one of the simplest mortgage relief options available to veterans. A loan deferment creates an agreed-upon period when you don't have to make regular payments on either principal or interest. It's essentially a "pause" on your mortgage until the end of the deferment period, without any interest accruing during the deferment time.
Loan forbearance is very similar to deferment with one crucial difference. If you receive loan forbearance, you can pause making your mortgage payments for an agreed-upon time period, but interest will continue to build. While forbearance can be an excellent way to mitigate financial hardship in the short term, it can sometimes result in paying higher than the original required amount due to the continuing interest.
All of these options are great ways to avoid foreclosure and late mortgage payments. Remember these programs if you need mortgage relief.
If you are looking for an agent who will guide you through the process of buying or selling your home, I am the right person for you! I am a hard worker who will be truthful and honest. Buying or selling can be a very scary process and I will be there for you each step of the way.
When I am not working, I enjoy spending time with my family and my dog, Sophie. She is a toy poodle but doesn't know she is a little dog! We enjoy gardening, crafting, fishing, and playing on our Sea Doo.
Let me know how I can help you with your dreams of home ownership! I promise you won't be disappointed!
