VA Loan Reader Question: VA Mortgages, Missed Payments and Foreclosure Actions
From the comments section:
“My husband got one of those letters today…It says Reinvestment Initiative, IRRRL-1003 Benefit Allotment, Forman 21-0760 Eligibility Notification. It shows our original lender who sold our mortgage to another lender (without our knowledge) several years ago.”
“We were making our payments on time with both lenders. The 2nd lender kept sending statements saying we didn’t pay our payment. Their explanation is that every persons payment goes in to a “pool”. It didn’t get credited to our account. Long story short, we just found out that our house has been foreclosed on and was sold TODAY to someone else. We have 10 days to pay mortgage. In full or be out of our house!”
It’s impossible to get the full story on these types of situations just from a reader comment, but VA borrowers should know several things that can help avoid the situation as described above. If you are a home owner paying any kind of mortgage, whether conventional, FHA, or VA guaranteed, any contact by your lender regarding payments should never be ignored.
If you’ve been informed that your payments haven’t been received, your payment status has changed, or that there are other significant changes to your VA mortgage, it’s crucial to speak to your lender as soon as possible to verify this information and learn what to do in order to stay current on your VA mortgage.
Some mortgage loan scams operate in a fashion similar to the details provided by the reader comments above–a notice by e-mail or postal mail stating that your mortgage has changed, will change, or can be modified. These communications usually request either a fee, your signature, or personal data.
In all such cases you should contact your original lender–the company listed on your loan paperwork–for verification and advice. You should also call the Department of Veterans Affairs for further clarification.
When contacted uninvited by a third party, never sign, agree to, or conduct business with a third party claiming to have power over your loan or the ability to modify it without calling the VA and your original lender first. Borrowers should never be “surprised” by foreclosure action–there are plenty of warnings, notices and other communication attempts by your lender required before foreclosure actions are taken.
That said, borrowers who ignore communication from their lender about the status of their VA mortgages do so at great risk–always take steps to make the situation right and call the VA for assistance, even if it’s just for confirmation of your rights and responsibilities under your current circumstances.
Do you have questions about the VA home loan process? Ask us in the comments section.
About Joe Wallace
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association.