Department of Veterans Affairs Extends Foreclosure Moratorium for VA-Guaranteed Loans Through December 31, 2020

The Department of Veterans Affairs has extended its foreclosure moratorium for VA-guaranteed mortgages through December 31, 2020.

The Department of Veterans Affairs (VA) has suspended foreclosures for VA-guaranteed mortgages through December 31, 2020, due to the coronavirus crisis. According to Circular 26-20-30, the moratorium applies to the initiation of foreclosures, and the completion of foreclosures in process. (Circulars describe current policies and procedures for servicing VA loans).

This moratorium is the third extension of the 60-day suspension that the VA first put in place on March 18, 2020. FHA later extended the moratorium until June 30, 2020, and then announced a further extension until August 31, 2020.

To find out if you have a VA-guaranteed loan, look at the paperwork you signed when you took out your home loan. VA-guaranteed loans contain specific language in the note and mortgage that identify it as a VA loan. Also, the closing documents will show fees paid to the VA. You can ask your servicer (often your bank or lender) if you have a VA-guaranteed loan as well.

Many states and cities, as well as other governmental entities, have also enacted emergency foreclosure moratoriums and bans on evictions due to the COVID-19 outbreak. Even if the foreclosure moratorium for VA-guaranteed loans doesn't apply to you, one of these suspensions might.

Effective date: August 24, 2020