VA encourages holders of guaranteed loans to extend all possible forbearance to borrowers in distress as a result of damage resulting from a natural disaster. The Bulletin lists specific regulations that may assist servicers in appropriate cases.

The VA requesting that holders establish a 90 day moratorium from the date that the county in which the subject property is located is declared a disaster area on initiating new foreclosures on loans affected by the natural disaster.  Holders should ensure that all foreclosures scheduled in the affected counties during the moratorium are reviewed prior to sale, to ensure that borrowers have not been affected significantly enough to justify postponement or cancellation.  Any questions about impact should be discussed with the St. Petersburg VA Regional Loan Center (RLC)

Holders are reminded that it is their responsibility to inspect damages to properties. 

When requesting bidding instructions for properties in the designated counties, servicers must certify (Lender Certification:  “This is to affirm that the property which is security for VA loan number
LH ____________suffered no damage, or if it did, the property has been restored to pre-storm or better condition”. ) that the value of the property was not affected by the natural disaster on properties when the appraisal was completed prior to the date of the disaster, or the date that the county in which the subject property is located was declared a disaster area. 

To view the Information Bulletin in its entirety, please click here.