The U.S. government has multiple options available for military veterans who may be facing foreclosure. Through the Department of Veterans Affairs, borrowers can get financial relief through means such as forbearance, deferment, refinancing and more. However, there are some crucial details to be aware of. Here are some of the most important things to know about current veteran mortgage relief options:
One of the most important aspects of understanding veteran mortgage relief options is knowing the difference between loan deferment and loan forbearance. A loan deferment basically "pauses" your mortgage payments for a pre-determined period. During this time, you don't have to make payments on either the principal amount or interest. Your interest is also paused: during your deferment period, you will not continue to build interest on your loan.
Forbearance is extremely similar except for the lack of accrued interest. Just like a deferment, forbearance allows you to stop regular payments for an agreed upon amount of time. However, interest will continue to accrue as normal. While you don't need to pay it off until later, this can sometimes result in a higher total loan balance than originally planned.
Credit scores factor in to nearly every aspect of our financial lives. As such, it's important to consider the possible effect of mortgage relief on your credit score. While most mortgage relief programs won't affect your credit in a negative way, there are some situations that could cause your score to drop.
Normally, missed mortgage payments would negatively impact your credit score. If granted forbearance or deferment, your lender should keep your account marked as current. If you were already behind on payments before the relief period, it might mean your mortgage will remain in delinquent status and hurt your credit score.
There are many options for mortgage relief offered to U.S. veterans to suit a variety of situations. To determine which is best for you, keep these details in mind.
Susan Shuxian Hu has been a dedicated realtor serving in Silicon Valley since 2010. With great passion, outstanding negotiation skills and due diligence, she has helped many buyers and sellers in their real estate needs. Living in West San Jose for more than 14 years, she has broad knowledge in Cupertino, West San Jose, Los Altos and Saratoga. She has enormous patience working with buyers and never tired of showing all possible properties that may fit client’s needs. Clients appreciate her best service to their satisfaction. She specialized in luxurious real estate purchase in Los Altos, Cupertino, Saratoga and Palo Alto. She also helped friend and past client’s referral working in San Francisco, Foster City and far reached Bay Area.
Susan Shuxian Hu was graduated in East China Normal University in Shanghai with bachelor and master degrees in Bio science. She came to US in 1989 and earned her Ph.D. in Molecular Genetics in Texas A&M University in 1996. After one year of postdoc in Southern Florida University in Tampa, she moved back to Orlando with her family and started working in Lucent Technologies. In 2002, Susan moved to California, Silicon Valley joined a start-up company. Since then she worked in high tech Corporation till 2009. Driven by her dream job pursuing, she found her passion working in sales by helping people in real estate after one year of education in De Anza business and real estate law study. Since then, she has been serving many people in Bay Area for their real estate needs.
With bilingual advantage, she has been actively working with Chinese immigrants as well as local engineers and residents. With rich high tech background and connection with Chinese community, Susan has served in luxurious real estate in last a couple of years.