VA Foreclosure Guidelines
Discover VA foreclosure guidelines for National Guard, Reservists and veterans.
If you have had a foreclosure in the past, the Veterans Administration has established specific VA foreclosure guidelines. Many American families have been hit hard financially the past several years with Airman and soldiers of the National Guard being no exception. Many National Guard Airman, soldiers, veterans and their families have experienced increased deployment tempos, suffered jobs losses or other economic hardships.
VA Foreclosure Guidelines
Having had a foreclosure in the past does not disqualify you from, but it may hinder your ability to get a VA home loan. VA foreclosure guidelines require a waiting period of two full years for all National Guard members and veterans from the date of the foreclosure. The foreclosure date is the date at which the home was sold at auction by the county in which the home was located.
If you had a VA home loan on your home and a VA loan foreclosure, a claim was probably made by the lender for a portion or the entire guarantee amount. This claim will affect your VA loan entitlement amount.
Deed-in-lieu of Foreclosure
A deed-in-lieu of foreclosure is a method to help homeowners prevent further damage to their credit history by avoiding foreclosure. If you have signed a deed-in-lieu of a foreclosure, you can still get a VA home loan. VA foreclosure guidelines require that lenders view a deed-in-lieu of foreclosure as a foreclosure from a mortgage loan underwriting perspective and the same waiting or seasoning period of two years is still required.
National Guard service-members or veterans who have a deed-in-lieu of foreclosure may have their VA loan entitlement amount affected if the lender made a claim to the VA for a portion of or the entire guarantee amount.
VA foreclosure guidelines allow for exceptions to be made in circumstances that were beyond the borrower’s control. National Guard members and veterans who can prove that their foreclosure or deed-in-lieu of foreclosure was the direct result of circumstances beyond their control may be able to purchase before the required two year waiting period. Documentation and letters of explanation are required to develop the facts surrounding the circumstances, but exceptions are ultimately made at the lender’s discretion.
Buying a Foreclosure
You may use your VA loan entitlement to purchase a home that has been foreclosed upon. Please contact us for more information to help you avoid potential pitfalls.
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