Right now, it’s hard to say what will happen to the U.S. economy in the next year. Some experts are saying that a recession is unavoidable and that it’s likely that we’ll see a number of layoffs and foreclosures in the coming months. This kind of uncertainty may make you feel nervous about your VA mortgage loan and what will happen if you cannot make your payments. Below, we’ve shared some advice on how to protect your mortgage and avoid foreclosure.
Can a VA Mortgage Loan Go into Foreclosure?
If you do not make your mortgage payments, your lender may choose to foreclose on your home. As a way of getting back the money they lost, they may choose to take your house. So yes, it is possible.
How to Avoid Foreclosure & Protect Your Home
During an economic recession, job layoffs are common. This financial impact can cause people to miss their mortgage payments. Their loan goes into foreclosure, and they lose their home. While there’s no way to tell if a recession is coming for certain, it may be a good idea to take steps to protect your finances now while you can.
Here are some tips on how to avoid foreclosure on your VA mortgage loan and protect your home:
Get Your Finances Under Control
Now is the time to get your finances in order. Paying down high-interest debt, controlling spending, and sticking to a budget can all help protect your financial situation and keep things from going bad to worse.
Build Your Emergency Fund
Recession or not, it’s always a good idea to have an emergency fund. Life happens. Sometimes, things occur which are beyond our control and suddenly you find yourself with unexpected medical bills or without a job for an extended period. Having an emergency fund could help you get through a financial rough patch unscathed.
Talk to Your Lender about a Repayment Plan or Forbearance
If you encounter financial hardship, you’ll want to talk to your lender as soon as possible. Chances are, they will be more than willing to work with you to come to an agreement. Most lenders offer options for customers who are experiencing financial hardship such as repayment plans and mortgage forbearance. If you’re nervous about talking to your lender, you can also contact a VA loan technician who may be willing to speak to them on your behalf.
We’re here to help. Call our office today to speak to an expert about your VA mortgage loan.