Definition: VA has the discretionary authority to buy a loan from the holder and take over the servicing. This is called “refunding”. Refunding may give VA the flexibility to consider options to help you save your home that your current lender either could not or would not consider. When the VA refunds a loan under 38 U.S.C. 36.4318, the delinquency is added to the principal balance and the loan is re-amortized. Your new loan will be non-transferable without prior approval from the Secretary. If your interest rate was lowered and an assumption is approved, the interest rate will be adjusted back to the previous rate. For more information you my go to The U.S. Dept of Veterans Affairs.

If you have the ability to make mortgage payments, or will have the ability in the near future, but your loan holder has decided it cannot extend further forbearance or a repayment plan, you may qualify for refunding. If your loan is in default and you are not able to repay the loan according to the lender’s terms, you should download the following forms: VA Form 20-5655, 26-6807a, and Refunding Information List. You should submit these forms along with a letter of request (stating the reason for default and that you would like to be considered for VA refunding) to VA. If refunding is appropriate, VA will notify you.

Coaching you more ways to get out of foreclosure.

Originally posted 2008-06-25 11:45:33. Republished by Blog Post Promoter

If you have incurred a short term financial hardship and your loan is two or more months past due, you might consider submitting a request for a repayment plan to your lender for approval. A repayment Plan is available if you can make your regular payment plus an additional amount per month until the loan is brought current. This option may follow a temporary forbearance. Only after reviewing your financial situation will this option be considered. All clients must be able to show that they can afford this plan in order to be eligible.

For more coaching on Avoiding Foreclosures

Originally posted 2008-06-20 13:04:48. Republished by Blog Post Promoter