The U.S. Department of Veterans Affairs (VA) has suspended foreclosures for properties secured by VA-guaranteed mortgages, including those previously secured by VA-guaranteed loans but currently in VA’s Real Estate Owned (REO) portfolio, through February 28, 2021, due to the coronavirus crisis. According to Circular 26-20-40—circulars describe current policies and procedures for servicing VA loans—the moratorium applies to the initiation of foreclosures, the completion of foreclosures in process, and evictions. But vacant or abandoned properties aren’t covered. This moratorium is the fourth extension of the initial 60-day suspension that the VA first placed on March 18, 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 identifies 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, cities, and other governmental entities have also enacted emergency foreclosure moratoriums and bans on evictions due to the COVID-19 outbreak. If the foreclosure moratorium for VA-guaranteed loans doesn’t apply to you, one of these suspensions might.
Effective date: December 28, 2020