With the current issues with our economy, many people are having trouble making ends meet. That is why the VA is reaching out to vets who are having problems making their mortgage payments. Since 2000, VA counselors have helped about 74,000 veterans, active-duty members and survivors keep their homes, saving the government nearly $1.5 billion.
The VA is not only reaching out to veterans with VA Loans, however. They are reaching out to all veterans who are having difficulty meeting their mortgage payments.
“VA is reaching out to veterans — both those who use our home-loan guaranty program and those who don’t take advantage of our guaranties — to keep people in their homes,” said Secretary of Veterans Affairs Dr. James B. Peake. “I’m proud of our solid record of success in helping veterans and active-duty personnel deal with financial crises.” – VA Reaching Out to Vets with Mortgage Problems, VA website
VA Loan counselors offer assistance to all veterans
The VA is encouraging military members, veterans and surviving widows with at-risk loans to seek advice from VA loan counselors even if their loans are not VA-guaranteed. While VA Loan counselors don’t have the authority to restructure loans (whether or not the are backed by the VA), they can advise veterans on their options including methods to negotiate their mortgages with their mortgage holder.
If you are a veteran who is having difficulty, consider contacting the VA’s loan counselors for some ideas on how you can meet your obligations. It’s easy, just call 1-877-827-3702. It’s a the toll free number that will automatically direct you to the nearest of nine VA regional loan centers.
Many VA Loans avoided the subprime mess
While the number of foreclosures in the US has increased over the last few years as buyers have been enticed by teaser loans and exotic mortgages, the number of VA loan foreclosures has dropped. This is because VA Loans go through a standard screening process before approval.
In recent years it has also been possible for homebuyers to purchase homes without mortgage companies verifying income, credit, and other vital financial information. Not so for VA loans.
“We never did the same things [as mortgage companies] as far as changing rules for what it takes to get a loan,” said Judith Caden, director of the VA Loan Guaranty Service, in a phone interview. “We’ve required underwriting and always had underwriting standards. We’ve always required that [applicant] income and credit be documented. We made sure that someone getting a VA loan could afford that loan.”
More VA Loan Information
The VA home loan guarantee program is an affordable way for veterans to buy a house with a guaranteed loan and no down payment. In fact, over 90 percent of VA-backed home loans were given without a downpayment. More information about the VA home loan guaranty program can be obtained at www.homeloans.va.gov. In addition, you can get more free information through Military.com’s VA Loan page.