The Department of Veterans Affairs (VA) strongly encourages loan holders to establish a 60 day moratorium beginning on March 18, 2020 on completing foreclosures or initiating new foreclosures on loans. VA regulations allow additional interest in a guarantee claim when termination is delayed by VA requested forbearance.
Loan holders should consider the impact of completing an eviction action when choosing to retain a property instead of conveying to VA. VA requests holders not expose Veterans and their families to additional risk through an eviction action. (Circular 26-20-8, March 18, 2020.)