The VA has released a change to Circular 26-06-3. This circular requests extended forbearance for VA home loans borrowers affected by the enormity of Hurricanes Katrina and Rita.  This change clarifies that VA will allow additional time to document written commitments by borrowers to work with mortgagees to develop and implement plans to resolve mortgage delinquencies.

Effective immediately, Circular 26-06-03 is changed as follows:

     Page 1, paragraph 2.b and c:  Delete “March 31, 2006” and insert “April 30, 2006”.

     Page 2, paragraph 2.e and f:  Delete “March 31, 2006” and insert “April 30, 2006”.

To view the full document please click on the following link.

VA Circular 26-06-3 Change 1 Extended Forbearance on Loans Affected by Hurricanes Katrina and Rita