VA issued Circular 26-21-07, updating home retention options and alternatives to foreclosure for borrowers affected by COVID-19. Per the Circular, VA now permits servicers to offer loan deferment in cases where one or more payments were missed due to COVID-19, regardless of whether the payments were subject to a CARES Act forbearance. Servicers may only utilize the loan deferment option in cases where the borrower is able to return to normal loan repayment under the loan contract. The Circular is effective immediately.
Click to view the VA Circular 26-21-07: https://www.tenaco.com/wp-content/uploads/2021/04/VA-Circular-26-21-07.pdf
