San Diego, CA (PRWEB) October 23, 2013 (insurancenewsnet.com)
While the shutdown of the U.S. federal government officially ended last week, VA Home Loan Centers, and many others in the financial and mortgage industries, are predicting there will continue to be a ripple effect on home sales, as well as the rate of foreclosures and short sales in the coming months, and even into 2014.
Already it has been documented that the shutdown caused a steep decline in consumer sentiment, corporate confidence and home sales, and experts are predicting that impact will continue to be felt, well into 2014. Due to the uncertainty and gridlock among U.S. lawmakers, there is a reluctance on the part of companies to increase hiring, and the recent shutdown is expected to lead to stagnant GDP growth for the last quarter of the year, and a higher level of unemployment. All of these factors are further compounded by the difficulties being faced by government workers who were furloughed, as well as veterans and service members who depend on government benefits to make mortgage payments.
While the government shutdown occurred recently, even before the event, it was recently reported that 19.8% of mortgage properties are currently underwater, which equates to 9.7 million residential properties nationwide.
The Veterans Administration (VA), released a circular titled “Special Relief Following the Federal Government Shutdown” which called on lender participation to assist Department of Defense civilian employees, veterans and active duty military members during and after the shutdown, but there is concern that many lenders aren’t going to be willing to provide accommodations for these individuals impacted by the government shutdown.
VA Home Loan Centers is one lender that is working to help these individuals, particularly in the fallout that has resulted from the government shutdown. With the anticipated increase in short sales and foreclosures throughout 2013 and into 2014, the VA Home Loan Centers is emphasizing the importance of short sale assistance for veterans and active duty service members. Programs provide grants and assistance to help sellers who have underwater mortgages, without any out-of-pocket expense. VA Home Loan Centers also highlights that sellers who opt to short sale, but are current on their mortgages, remain eligible to obtain another home loan, without a waiting period.
About VA Home Loan Centers ( https://www.vahomeloancenters.org)
VA Home Loan Centers is the premier lender of mortgage loans to veterans and active-duty members of the military. The organization works with borrowers to obtain both 15 and 30-year fixed mortgages, and eligible borrowers may qualify for rebates of up to 2.75% of the amount of their loan, when they apply with the VA Home Loan Centers. In addition to mortgage financing, VA Home Loan Centers can provide help to veterans with handling of military short sales, the processing of loan applications and purchase assistance. In addition to no money down and no closing costs options, the VA Home Loan Centers provides higher debt ratios. VA-backed mortgages don’t require mortgage insurance premiums, offer low interest rates and borrowers aren’t subject to prepayment penalties.