VA Extends Loan Forbearance Period

Some of you are going to breathe a sigh of relief at this news: The Department of Veterans Affairs moratorium on evictions and foreclosures was due to end March 31, but it’s been extended to June 30.

The extension is designed to keep you in your home while you sort out the damaging financial effects of the COVID pandemic.

If you need forbearance (permission to miss payments or send a reduced amount), your lender is expected to grant you that for up to six months. During this time there are to be no late fees or penalties, but interest will accrue. The deadline to ask for forbearance is June 30, 2021.

If you can’t make up your missed payments all at once when you have income again, call the mortgage company. If you’re not comfortable doing that, call the VA loan people directly at 877-827-3702.

Your missed payments can’t just be pushed to the end of the loan period, but it is possible the loan could be modified. The VA allows loans to be extended under certain situations.

Your credit score won’t take a negative hit during forbearance (not making payments), but only if you were current at the time you requested it. If you were already late on payments when you asked for help, then yes, they’ll continue to report you as delinquent during the whole period. That’s why it’s important to stay ahead of the problem by asking for help before things spin out of control.

You have three ways to keep your home: forbearance, a repayment plan or a loan modification.

To talk to the VA about COVID-related loan payment problems, call them at 877-8273702.

If you’re a renter and are in danger of being homeless, call the VA immediately at (877) 4243838.

You can also go online for additional information: benefits. va.gov/homeloans/cares-actfrequently-asked-questions.asp