Struggling to Pay Your VA Loan? You Have Until July 2023 to Seek Relief

There's relief available, but you'll need to ask for it.

At this stage of the pandemic, the U.S. economy is in a much stronger place than it was earlier on in the outbreak. Not only have many jobs been added to the economy, but the unemployment rate has shrunk substantially, to the point where it's now at its lowest since the start of the crisis.

In spite of that, many homeowners are still having a hard time keeping up with their housing payments, especially in light of recent rampant inflation. Unfortunately, falling too far behind on a series of mortgage payments could result in dire consequences -- namely, foreclosure.

If you have a VA loan, the good news is that you can explore different options for applying for relief that could make it possible to stay in your home, despite your inability to pay your mortgage in its current state. And now, you'll have even more time to do it.

Get the mortgage help you need

It's in the best interest of mortgage loan servicers to work with struggling borrowers and help them stay in their homes. Foreclosure isn't a particularly attractive option for loan servicers, because it can be costly and time-consuming. And for borrowers, foreclosure doesn't just mean the loss of a home. It can also mean extensive credit score damage that makes buying a new home difficult for many years.

Thankfully, there are a host of relief options available to VA loan holders who are having a difficult time paying their mortgages. And now, those borrowers are being granted extra time to ask for help.

Initially, the VA was going to give borrowers impacted by the pandemic until April 1, 2022 to apply for relief. Now, the VA has extended that deadline to July 1, 2023, leaving borrowers with an extra 15 months to request assistance.

The VA has also stated that it is committed to assisting borrowers who have experienced a financial hardship stay in their homes. Those looking for aid can speak to their loan services about entering a special forbearance period (where mortgage payments are paused) or modifying the terms of their mortgages to make them more manageable.

All mortgage borrowers should seek relief

It's great that VA loan servicers want to help borrowers stay in their homes, and this option isn't limited to those with a VA mortgage. Conventional mortgage holders can also talk to their loan servicers about options that could make it possible to stay in their homes.

The reality is that a lot of people still have a ways to go when it comes to recovering from the pandemic. Even though jobs are now more abundant, some people may still be in the process of working their way back up to full-time employment or earning their previous wages. Asking for help on a mortgage is something any struggling homeowner should do -- regardless of whether they have a VA loan or used a different method of financing a home purchase.