Service members and military families get a further relief as the foreclosure protection under the Servicemembers Civil Relief Act has been extended for another two years.
HousingWire reported that the House of Representatives last week approved the S. 2393 to extend up to 2017 the one-year protection to veterans from foreclosure that was signed in 2015.
Housing Policy Council President John Dalton said, "Extending the one-year protection from foreclosure for another two-years allows service members and military families sufficient time to get on their feet financially and to avoid the stress of potentially losing their home as they manage their finances in a post-active military life."
The U.S. Department of Veteran Affairs (VA) also provides some assistance for the borrowers to prevent them from losing their homes over foreclosure. According to The Mortgage Reports, more than 90,000 veterans were saved from foreclosures in 2015 because of the VA's assistance, saving taxpayers some $10 billion.
The Mortgage Reports said that the VA works with the homeowners and loan providers and help them reach an agreement for repayment plans. By helping homeowners retain ownership of their homes, the whole neighborhood also benefits. This is because when there are foreclosures, the values of homes in and around the area can be pulled down.
The VA also provides home loans to qualified members which are considered as one of the lowest-risk mortgage types. It offers 100 percent financing and low mortgage rates, an average of 25 basis points lower than conventional rates. Those qualified members who cannot foot the usual percentage of down payment in conventional loans will find VA loans a lot convenient because it does not require a down payment and mortgage insurance. Even with the record lows of mortgage rates in the market these days, a VA loan would still be the best option, especially for a first-time homebuyer.
