Chicago, IL (PRWEB) May 08, 2013
The unemployment rate among veterans was 7.1% in April. While this is better than the overall unemployment rate of 7.6%, The Federal Savings Bank outlines how relocation loans are still in an option for those VA's suffering from financial turmoil.
In 2011, the Veterans Benefits Administration in the Department of Veterans Affairs announced the implementation of VA relocation loans assistance for veteran borrowers. The VA relocation loans assistance program was established to help both servicers and veterans who are in danger of losing their homes. It authorizes mortgage servicers - the companies who receive a homeowner's mortgage payments - to give veteran borrowers a $1500 advance if they fit into one of two categories: either they execute a deed-in-lieu of foreclosure (DIL) or participate in a short sale of their property. This advance is intended to give veterans enough funds in order to move to a new house or pay for other suitable lodging when they lose their homes.
A deed-in-lieu of foreclosure is also referred to as a mortgage release. In this case, a homeowner transfers the ownership of their property to the mortgage lender. In exchange, the borrower is released from their mortgage and payments.
On the other hand, completing a short sale means that when someone sells their property, the amount received in the sale is not enough to pay back the debt on the real estate. Generally, a lien holder then agrees to accept less than the amount owed and releases the lien.
Unfortunately, in both cases borrowers lose their homes and have a delinquent partial payment on their records, but a DIL or short sale can still be preferable to a foreclosure.
Thus, VA relocation assistance provides options other than foreclosure in order to mitigate the losses when there is no other way to help the veterans retain their homes. It helps veterans' credit by keeping a foreclosure off their records and also protects the value of the property because executing a DIL prevents a home from being vacant and deteriorating for very long.
Interested in hearing more about veterans loans and benefits? Visit the federalsavingsbank.com or call (877) 788-3520.