VA issued Circular 26-24-12, Change 1, removing one of the exceptions to the targeted foreclosure moratorium announced in the original Circular. Per the original Circular, servicers may not initiate, continue and/or complete a foreclosure unless:
- The loan is secured by property that is vacant or abandoned;
- The servicer has documented the borrower desires neither to retain homeownership nor avoid foreclosure;
- The servicer has not received a monthly payment for at least 210 days, and the borrower is not responding to the servicer’s outreach attempts; or
- The servicer has evaluated the borrower for all home retention options but has determined that no home retention option, including VASP, or alternative to foreclosure will work for the borrower.
This Circular removes the exception in bullet point 3 above, “The servicer has not received a monthly payment for at least 210 days, and the borrower is not responding to the servicer’s outreach attempts.” The Circular went into effect June 21, 2024.
Click to view the VA Circular 26-24-12: https://www.tenaco.com/wp-content/uploads/2024/06/VA-Circular-26-24-12-05-30-24-1.pdf
Click to view the VA Circular 26-24-12, Change 1: https://www.tenaco.com/wp-content/uploads/2024/06/VA-Circular-26-24-12-Change-1-06-21-24.pdf
