Ensure a smooth transition for veterans from active military service to civilian life. Improve the FATS ratio to 40 percent. One of VA s critical functions is to assist veterans after they receive their housing benefit. When VA is able to pursue an alternative to foreclosure, the costs to the government are reduced.
Veterans are able either to save their home or avoid damage to their credit rating.
Refunding VA may purchase the loan when the holder is no longer willing or able to extend forbearance, but VA believes the borrower has the ability to make mortgage payments, or will have the ability in the near future. Voluntary conveyance VA may accept the deed in lieu of foreclosure from the borrower if it is in the best interest of the government. Compromise claim If a borrower in default is trying to sell the home, but it cannot be sold for an amount greater than, or equal to, what is owed on the loan, VA may pay a compromise claim for the difference in order to complete the sale. There is a need to automate the default servicing and foreclosure management so VA staff can direct efforts toward helping veterans avoid foreclosure. Enhancing the system will increase its utility, provide more accurate data, and improve customer service and workload management.