Loans from the Department of Veterans Affairs have enabled many members of the military — both active and retired, as well as their spouses — to obtain mortgage loans for the purchase of homes. Unfortunately, many veterans are facing home foreclosure since they are unable to make their mortgage payments. Officials from the VA have intervened on behalf of those veterans who were affected by the 2017 hurricanes that hit Florida and other areas in the country.
The VA initially asked lenders to halt the foreclosure process for veterans for 90 days after Hurricanes Harvey, Irma and Maria affected the country. Officials then requested that lenders stop foreclosures for 180 days. The latest request is that foreclosures be stopped for 270 days. The lenders are the ones that ultimately make the decision to stop the process. However, if a lender does halt the foreclosure, the VA can collect additional interest.
Texas was hit by Harvey in August, followed by the arrival of Irma in Florida in September. Extensive damage was prevalent in these two states after the storm. The number of veterans affected by the hurricanes is unclear; however, Florida is typically very high on the list of states with new loans every year. Another statistic of note is that Florida was third in the nation for the number of loans that were refinanced to get an interest rate reduction.
The possibility of a home foreclosure is a frightening thought to a homeowner. To avoid losing their homes, Florida residents should seek the guidance of a knowledgeable bankruptcy attorney. A trusted lawyer will work with families to keep their homes and develop a plan to get their finances back in order.
Source: militarytimes.com, “VA extends request for moratorium on foreclosures after 2017 hurricanes“, Kevin Lilley, March 28, 2018