This spring has seen a high number of tornadoes in the South and Mid-West regions of the country. Consequently, many homes and businesses have been destroyed, and families severely affected. Even when a home is not destroyed, damage to the surrounding community can adversely impact the financial stability of the families in those homes. To help veterans living in these areas, the VA announced that they are asking Loan Holders of VA Loans to “play nice.”
The VA is asking these Loan Holders to be understanding that the tornadoes will cause many veterans to become unable to continue to pay their mortgage on time for a while following the disaster. Many areas especially hard hit have been declared disaster areas and are getting the attention of FEMA. In addition to strictly homes that were damaged or destroyed, the VA is asking the Loan Holders to recognized that other issues may have an indirect impact on the veterans’ ability to pay. These other issues may be work locations which are damaged or destroyed, or business partners who were damaged. Things such as business partnerships being hampered can have devastating trickle-down effects if consideration isn’t extended to those affected.
The VA does encourage the Loan Holders to communicate with their borrowers, and establish the nature of the situation. The goal of this is to prevent dishonesty, and false claims of hardship due to weather impacts.
Additionally, because the VA believes that many Loan Holders are planning to waive any late fees associated with missed payments, they are in turn, not going to penalize any Loan Holders for late default notification resulting from the tornado damages. This allowance is being extended whether the delay is due to direct facility damage or just communicating-facility damages. Furthermore, the VA is also requesting that the Loan Holders suspend credit reporting on veterans’ loans during this time.
If you have been affected by these natural disasters, don’t hesitate to contact your Loan Servicer. You can use the circular published by the Veterans Benefits Association which details these requests to assist your request to your Loan Holder.
Photo thanks to markrnewton under creative common license on Flickr.