Homeowners are Finding it Difficult to Pay Back Loans
The worst fears seem to be coming true for all those Americans who bought the loans for their dream homes. They are now finding it very difficult to repay these loans with many even applying for loan modification and other debt consolidation assistance.
Fortunately there are hope and assistance being offered by the Fed. If you are one of those encountering such financial trouble then you need not only look at the above mentioned options for help. There are other solutions being provided by the Fed to assist homeowners in the military as well as nonmilitary categories.
These options are under the VA short sale program initiative launched by the Fed. They include loan modification, refinancing and the provision for homeowners to settle the loan through the Short Sale VA Loan facility.
Let us look at each of them in a bit of detail.
The Federal Loan Modification Initiative, the homeowner gets a substantial reduction in the monthly payment obligation. However, you need to qualify for it. As a veteran military person, you will even qualify for direct assistance despite the fact that you do not have any VA loan at the moment. You can approach the FTC to avail of free resources, loan assistance and counseling if you do not come under the ‘veteran’ category.
Federal Home Loan Refinance
You can also get your loan refinanced into a home loan that is government insured. The FHA as well as VA loans can be availed of by those qualifying for the same. As long as you have been regular and current in your payment of the mortgage along with other debt, you will qualify and it is worth a try. The interest rates are low but you need home equity and will have to use the loan thus taken to carry out improvements for your home or house related issues only.
Settling the loan
Under the military short sale program that is offered to veterans as well as those active in service, the borrower would be able to sell the property and use the proceeds to settle the loan fully. The best aspect of this facility is should the borrower finds it difficult to sell the property within a stipulated time frame, the Defense Department will on his behalf settle the loan and purchase the property.
The Short Sale VA Loan facility is thus of great help to those who have exhausted other options. The department also offers free counseling on how to go about the process and that is free of cost. What is more gratifying is the fact that the VA HLC will even look for the buyer on behalf of the borrower without charging any fees. They do everything from their side to make the process as easy as possible for the borrower.
One of the great advantages with this short sale process is that you as the borrower can live without paying any rent in the house and not even move anywhere else till the process is completed even if it takes up to a year.
Once the process is completed, your credit report too will look much better as it will reflect settlement of debt in full and not any foreclosure or that you have applied for bankruptcy. You will also qualify to buy another house without any complications coming in the way. You can in fact buy a new house within a week of settling your current debt as long as you have been regular with your mortgage payments.
Summary
Settlement of home loans taken is possible under the options mentioned above and there is no need for you to panic.
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Category: Loans
