Is the Obama Home Affordable Program Open to Those with VA Loans?
Unfortunately, at press time the only answer available at MakingHomeAffordable.gov includes the following: "The Administration is working with FHA and VA on a program that would provide for modifications consistent with the Making Home Affordable Program. Currently, loans insured or guaranteed by these agencies are being modified under other programs."
That's unintentionally misleading-it makes you think there isn't a current plan in place to help veterans with VA loans in the same way as the Obama plan does. Fortunately, there is help, thanks to the Department of Veterans Affairs.
Effective February 1st 2010 and expiring on December 31, 2012, the VA offers its own version of the Home Affordable program. The Department of Veterans Affairs has stated in no uncertain terms that it expects VA loan issuers to provide "all reasonable efforts" to help veterans avoid foreclosure or at the very least, cut the losses when foreclosure can't be avoided.
There are rules covering the VA Home Affordable program, the first being that VA borrowers must try "traditional" methods to avoid foreclosure before resorting to the VA Home Affordable program-that includes ordinary forbearance, loan modifications, and repayment plans. Affordable alternatives are preferable,
but if the borrower can't find a solution, the lender is obligated to consider the VA Home Affordable program as an alternative to foreclosure.
CAN I QUALIFY FOR THE VA HOME AFFORDABLE MODIFICATION PROGRAM?
If you risk foreclosure on a home purchased with a VA mortgage, you are eligible for the VA Home Affordable Program if:
- You don't qualify for traditional loan modification, forbearance or other options.
- You're eligible if the property in question is your primary residence.
- You are eligible if the VA Home Affordable loan modification plan is agreed upon no later than the current expiration date of the VA Home Affordable program (December 31, 2012 at press time).
- You are not current on your existing VA home loan.
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