VA Loans Have Lowest Foreclosure Rate
Most home loan lenders are willing to work with VA, but there are rare exceptions that look on them negatively for one reason or another. While it may not be advisable to work with them at all, if you do there's new supporting evidence that shows VA loans are a far safer bet than anything else on the market. New statistics released by the Mortgage Bankers Association's National Delinquency Survey show that veterans using VA loans have the lowest foreclosure rate in the United States.
The National Delinquency Survey bases its sample on about 41 million mortgage loans which represents roughly 88% of the market. Each loan is separated into a specific category (prime, subprime, VA, and FHA), so the evidence is clear-cut. VA-guaranteed loans have a foreclosure rate of only 1.98% and have enjoyed the lowest foreclosure rate for five years. Even prime loans, which have very strict credit and underwriting requirements, have been bested with a foreclosure rate of 2.47%.
Chris Coy, Deputy Under Secretary for Economic Opportunity for VA, stated in a press release that, "A key contributor to VA retaining the lowest foreclosure rate over the last five years is its loan servicing efforts. VA and its partnering loan servicers review all home loans during default to ensure that all appropriate home retention options have been explored."
This information is yet another sign that most veterans, with a little bit of assistance where needed, are responsible, hard working, and continue to make strong contributions to the nation well after their service has ended.
If you're looking for information on avoiding foreclosure with your VA loan, check out the following articles:
Avoiding Foreclosure: VA Has the Tools to Help
VA Loan Foreclosure? Call a Regional Loan Center
VA Loan Foreclosure Facts