VA encourages loan holders to extend relief to Alabama borrowers
On March 8, the Department of Veterans Affairs (VA) issued Circular 26-19-07, requesting relief for homeowners impacted by severe weather in Alabama. Among other things, the Circular encourages loan holders to (i) extend forbearance to borrowers in distress because of the wildfires; (ii) establish a 90-day moratorium from the date of the disaster on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend reporting affected loans to credit bureaus. The Circular is effective until April 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.
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