VA Loan Articles

VA Borrowers and the Servicemembers Civil Relief Act

If you have a VA home loan and are facing delinquency, there are specific plans and programs that can help you avoid becoming delinquent on your VA mortgage payments. In many cases there is help available that, at its' most advantageous, is contingent on not missing any payments. That's one reason why it's so important to explore your financial options before you get to the point where you must choose between making a VA mortgage loan payment and paying your other bills. Identify the trouble early and act to prevent your financial issues from becoming a major crisis and you can get the most valuable help from the VA or your loan officer.

Some military members on active duty who encounter financial hardships turn to a provision called the Servicemembers Civil Relief Act or SCRA, which is designed to help offset high interest rates, prevent evictions and other measures that can hurt the veteran right when they need a little financial leeway the most. Unfortunately, in the case of VA loans, there's no help from the Servicemembers Civil Relief Act as it might apply to your VA mortgage, since this act is intended to provide help for debts incurred before active duty service began.

That's not to say that VA loan holders should ignore using the act--it just can't help directly with regard to your VA home loan balance. It can help offset your payments in other areas which could have a trickle-down effect in terms of the amount of money you have left over to pay your VA mortgage. If your credit card interest rates and payments are out of control and affecting your ability to pay for the VA loan, the SCRA could help change your finances and avoid missing payments. You must approach each creditor individually to invoke the SCRA, contact customer service at your credit card company or other creditors and learn the procedure for requesting relief under SCRA provisions.

Direct Assistance from the VA

If you have a VA guaranteed loan, you can get direct assistance from the VA in the form of "supplemental servicing". Did you know the VA has assistance in eight regional centers designed to help you avoid foreclosure on your VA home loan? These are known as regional VA loan centers and they are meant to work directly with your bank to help you explore the options you have available to avoid foreclosure. If you experience difficulty paying your VA home loan, call (877) 827-3702 for details on how to work with the VA through the VA Loan Guaranty office nearest you.

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