VA issued Circular 26-21-07, Change 1, providing an updated summary of the home retention options and alternatives to foreclosure that servicers should utilize to help borrowers affected by the COVID-19 pandemic. Per the Circular, VA clarified that a servicer can enter into a VA Disaster Modification if the modification is made no later than 18 months after the date on which the COVID-19 national emergency ends without VA preapproval. In addition, VA is allowing servicers to utilize Disaster Extend Modifications to extend a loan’s original maturity date for up to 18 months in cases where the loan is modified no later than 18 months after the date on which the COVID-19 national emergency ends. The Circular went into effect June 03, 2021.
Click to view the VA Circular 26-21-07, Change 1: https://www.tenaco.com/wp-content/uploads/2021/06/VA-Circular-Change-1-26-21-07.pdf
