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Everything You Want to Know to Avoid VA Foreclosre
VA foreclosre, or any other government foreclosures, share similar foreclosure prevention strategies with lending institutions and banks. Majority of foreclosures occur because the borrower failed to pay his mortgage installments on time.
However, some of the possible causes of government foreclosures are a little more comprehensive than bank foreclosures.
To help you avoid losing your home to VA foreclosre, get to know how the Department of Veterans Affairs (VA) purchase a property and the grounds that trigger it to start a foreclosure proceeding.
How and When VA Foreclosures Occur
VA purchases homes as a result of repossession on VA guaranteed or financed loans. For example, if you missed several payments for your monthly mortgage, your lender will inform VA that you are in default. If you were unable to pay your dues and make your account current, your lender will ask the VA to pay the unpaid balance of your loan.
VA will pay your lender and will take over the ownership of your property. The VA foreclosre will be sold in an auction.
How do You Prevent VA Foreclosures
The best advice that you may receive on how to prevent foreclosure is not to miss your mortgage payment. But sometimes, because of mitigating circumstances, you end up facing the possibility of losing your home. As early as possible contact your lender and discuss your financial situation.
Discuss with your lender the possibility of refinancing or modifying the terms of your loan, either by reducing interest rates or expanding the terms. You can also discuss with your lender the possibility of a short sale. This method may not allow you to hold on to your home but it would protect your credit which would be useful for you if you decide later to buy a property with more affordable rates.
When facing a VA foreclosre, you can be sure that there are certified agencies that could offer foreclosure prevention assistance for free.