• Pay The Delinquency
• Repayment Agreement
• Forbearance
• Payment Assistance
• Reamortization/Loan Modification
• Refunding

Under most circumstances, loan holders are required to accept payment of the full delinquency and reinstate the loan. The delinquency may include certain legal costs if you are already in the foreclosure process. Many loan holders require certified funds for reinstatement.

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The most common way of bringing your loan current is to repay part of the delinquency each month in addition to your regular payment. Should you need VA assistance proposing a repayment plan to your mortgage company, a financial statement, is required. A completed financial statement will allow your VA Servicing Representative to determine a repayment schedule best suited to your needs.

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If you are temporarily unable to meet your monthly mortgage obligation, your mortgage company may extend forbearance by agreeing to suspend payments or accept partial payments for a limited period of time until you will be able to begin a repayment schedule. VA cannot require the mortgage company to give forbearance or to agree to a specific repayment schedule; however, mortgage companies will usually cooperate as long as you can show that you will be able to resume payments on a specific date in the near future.

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VA does not have a program which would enable us to give you direct payment assistance. However, some state and local governments, as well as private charitable organizations, have programs which will make all or part of your mortgage payment for a fixed period of time. VA can provide information on these programs.

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If your loan is reamortized, the delinquency is added to the loan balance in order to bring your payments up to date. This increases your loan amount and will also increase your monthly payments. The amount of the payment increase will not be as great if the life of your loan is extended at the same time. Your loan holder is allowed to extend and/or reamortize your loan by VA regulations; however, we cannot require the holder to do so.

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VA has discretionary authority to buy a loan from the mortgage company. This is called "refunding." We consider this alternative for every loan before foreclosure is completed. Your mortgage company must have already decided not to modify your loan, extend additional forbearance, or approve another repayment plan. If you are a homeowner who occupies the property and has the ability to make the mortgage payments, or will have the ability in the near future, you may qualify for refunding.

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