Advertisement

You will be redirected to the page you want to view in  seconds.

Vets' home loan defaults lowest since 1980

Nov. 14, 2013 - 10:15AM   |  
  • Filed Under

The default rate on veterans’ home loans has dropped to its lowest level since 1980 while nationwide foreclosure rates on veterans’ loans have fallen to their lowest level since 2008.

The Mortgage Bankers Association reported Nov. 7 that the delinquency rate — defined as loans at least one payment past due — dropped to 6.41 percent of all outstanding loans in the first quarter of 2013.

The foreclosure rate fell to 3.08 percent, according to the association’s national delinquency survey.

What stands out in the survey are veterans’ home loan, which in the first quarter had a 5.41 percent delinquency rate and a 1.81 percent foreclosure rate.

The chief reason for the low default and foreclosure rates is that 40 percent of the Veterans Affairs Department’s loan portfolio originated since 2007, generally considered the end of the bursting of the “housing bubble,” according to the association.

VA credits an aggressive effort to work with financially troubled homeowners as soon as they miss their first payment as part of the reason for the low foreclosure rates

There are still foreclosure problems, but only two states — New York and New Jersey — showed an increase in the percentage of loans in foreclosure in the last quarter, according the association.

More In Pay & Benefits

Start your day with a roundup of top defense news.

VA Home Loan
Rates

Search By:

Product Options:
Zip Code:

News for your in-box

Sign up now for free Military Times E-Reports. Choose from Money and Education. Subscribers: log in for premium e-newsletters.

This Week's Army Times

This Week's Army Times

More force-outs
Army expands involuntary separations of problem NCOs

Subscribe for Print or Digital delivery today!

Classifieds
MilitaryTimes Green Trusted Classifieds Looking to buy, sell and connect on Military Times?
Browse expanded listings across hundreds of military installations.
Faces of valorHonoring those who fought and died in Operations Iraqi Freedom and Enduring Freedom.
hall of valorThe Hall of Valor is a searchable database of valor award citations collected by Doug Sterner, a Vietnam veteran and Military Times contributing editor, and by Military Times staff.
   Last Post: garhkal
        Apr 19, 2014 3:13 PM
   Last Post: garhkal
        Apr 15, 2014 4:55 PM
   Last Post: Shaken1976
        Apr 15, 2014 5:13 PM
Handbooks

All you need to know about your military benefits.

Benefits handbook

Guard & Reserve All you need to know about the Guard & Reserve.

guard and reserve handbook