If you have been worrying about foreclosure and you have a VA (United States Department of Veterans Affairs) loan, you may have just caught that break you’ve been waiting for. As of February, 1 2008, new rules for VA guaranteed loans take effect. These new rules are meant to help relieve both foreclosure victims and the lenders with VA backed default mortgages.
The VA intends to “go live” on a computer based tracking system, as well as implement all the new changes throughout 2008. The new regulations are very similar to the previous; however, you will notice many changes specifically regarding foreclosure and default loans.
The new regulations have increased the authority of loan services to provide loss mitigation to default clients and have allowed more control of this process by the servicer. New caps on fees that can be charged and requirements have been placed on lenders such as foreclosure timelines and caps on fees that can be charged. There is also a new ranking system that will rate loan services based on their ability to work out a solution to these default and foreclosure loans. Although we don’t expect this system to be in place until the computer tracking system us up and running.
To view the entire document relating to the new regulations, please visit http://www.foreclosurefish.net/newvaregs.pdf