What are VA Mortgages?
Veterans Affairs mortgages, also known as VA Home Loans, help veterans get financing to buy a home through loans that are easier to qualify for than traditional mortgages.
Some important information about VA Mortgages:
- They are available to all active military members, military veterans, and spouses of military members who died on active duty or due to a service-related disability.
- They sometimes do not require a down payment.
- The loans are made through private lenders and guaranteed by the Department of Veterans Affairs. They do not require mortgage insurance.
- They have no minimum credit score requirement.
- If you fall behind on your payments, the VA can negotiate foreclosure alternatives with the lender on your behalf, including repayment plans and loan modifications.
Can My Lender Foreclose on My VA Mortgage in NJ?
If you have a VA mortgage, the lender cannot foreclose unless you fail to make three full monthly payments. The lender must give the VA thirty days’ warning of its intent to foreclose and must make all reasonable efforts at forbearance before actually foreclosing on the property. The lender must consider temporary suspension of payments, extension of the loan, and acceptance of partial payments. If the lender still intends to foreclose, you can stop the foreclosure by paying all overdue payments, all late charges, and any of the lender’s foreclosure expenses to date.
The lender’s failure to meet its obligations in this area can be a defense to foreclosure. For example, send a letter to the lender asking it to consider foreclosure avoidance strategies. The lender’s failure to respond appropriately is evidence of its failure to meet its responsibilities. Another option is to contact the regional VA office serving your state, explain the reasons for your default, and ask about the best plan for getting your mortgage payments back on track.
Special Protections for Active Duty Military
If you are on active duty in the military or left within the past nine months, or you are the spouse or dependent of someone on active duty, you have special protections from foreclosure under the Servicemembers Civil Relief Act. This Act applies to all types of mortgage loans, but only applies if you entered into the loan before your current period of active duty.