Refinancing Your VA Home Loan Equity Reserves Can Save Your Home When You're in Foreclosure

When you purchase a VA home loan, your home is protected from an inventory risk. When the VA Home Loan Equities Reserves is depleted, your home will be seized by the Federal government and sold for the asking price to cover the mortgages.

When your loan equity reserves have been depleted, the next thing you will be faced with is foreclosure. Many people will qualify for a VA loan with poor credit. What happens after you've gone through the lengthy process of foreclosure?

Fannie Mae and Freddie Mac will need to foreclose on your property and will collect the amount you owe them plus any additional fees that you owe. Depending on your credit, they may not take more than you owe them.

It's important to note that there is a foreclosure procedure before you can be forced to move or sell your home. The HUD rep will contact you and will offer you either an agreement for the sale of your property, the option to work out an arrangement to resolve your debt, or will agree to pursue your delinquent mortgage as a default judgment.

With a foreclosure, you will not get the full amount you owe. You will still have to pay off your mortgage in full as long as you stay in your current residence.

Evictions from your home can happen quickly. When you are facing eviction, you can protect yourself by refinancing your home equity loan.

You may not be able to refinance into a VA home loan equity loan if you owe more than the home is worth. It's important to find out this number before you begin shopping for a new home.

Refinancing can save you thousands of dollars by lowering your monthly payments and lowering your overall cost of ownership. You can pay less each month on your mortgage, keep your home and save money for future investment.

While you're waiting for your home to be sold at auction, there are ways to eliminate the amount you owe to stop foreclosure and save your home. If you are current on your mortgage and don't want to move out of your home, you can consider a short sale.

A short sale will stop foreclosure on your home so it will not be auctioned. Many homeowners believe that they will lose their home at auction, but the lender will hire a short sale specialist to purchase your home at auction and then negotiate a lower price.

During the negotiations, the home seller can have his or her fees waived, the percentage of the selling price the lender takes decreases, or the lender agrees to take back some of the home's equity. These options can help the homeowner save a significant amount of money by reducing the total amount they will owe.

Remember that you can save your home even when facing the threat of foreclosure. Refinancing your home equity loan can lower your monthly payments and give you the chance to save your home.