VA foreclosure moratorium ends – what to do if you are behind on payments!

January

27

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The VA foreclosure moratorium is over.

VA has had foreclosures on hold for quite some time as they introduced new options for struggling borrowers in 2024, but time is up. VA is foreclosing on home owners in default again, but if you're in trouble, you have options!

loan modification
YOU WANT TO STAY IN THE HOME

VA has many new options to modify your loan and attempt to make payments more affordable. This is more difficult in a higher rate environment, but if you want to keep the home, it's worth a call to your lender to see what they can do.

sell in preforeclosure
YOU WANT TO SELL

Even if you're behind on the payments and already in foreclosure, selling is still an option!

Unfortunately, VA loans (especially newer VA loans) are usually short on equity. However, even a home with no equity can still be sold in a short sale, (VA Compromise Sale).

walk away from house
YOU WANT TO WALK AWAY

Many folks think they can simply give the house back to the bank and walk away. Unfortunately, this is your least favorable option as the only way the lender can take the home of is through foreclosure, or deed in lieu of foreclosure.

Many VA home loans, especially those written in the most recent peak years of the real estate market lack the equity to sell and cover all the costs. VA has a short sale program to help homeowners without equity sell and avoid foreclosure!

VA Compromise sale
Here at Reid Real Estate Group we've been helping homeowners with short sales since 2008, and we can help you!

Last Updated on January 27, 2025 by Minna Reid

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