Help for VA Home Loan Borrowers in Financial Distress Encouraged

VA Announces Disaster Assistance After Tornado Outbreaks


Help for VA Home Loan Borrowers in Financial Distress Encouraged




WASHINGTON (May 17, 2011)- The Department of Veterans Affairs (VA)
announced today that special disaster assistance may be available to
Veterans with VA-guaranteed home loans who have been affected by recent
tornados in the South. Veterans living in the designated disaster areas
in Alabama, Arkansas, Georgia, Mississippi and Tennessee may receive
mortgage assistance through their loan servicers.

"VA wants to do everything we can to help Veterans and their families
during this difficult time," said Secretary of Veterans Affairs Eric K.
Shinseki. "It is important for Veterans to be aware of their rights and
understand there are many resources available to help them recover from
this disaster."

VA strongly encourages mortgage companies not to initiate any new
foreclosures in the disaster areas for a period of 90 days. The agency
also encourages mortgage companies that service VA-guaranteed home loans
to extend every possible forbearance to borrowers who are in distress
through no fault of their own. This includes suspension of reporting to
credit bureaus and waiving late charges for affected borrowers.

There are almost 26,000 Veterans with VA-guaranteed home loans in
counties in Alabama, Arkansas, Georgia, Mississippi, and Tennessee that
have been declared eligible for individual assistance by the Federal
Emergency Management Agency (FEMA).

Veterans should contact their insurance company as soon as possible to
file claims for losses. At the same time, they need to contact their
mortgage companies to let them know their circumstances.

Veterans should also start the FEMA disaster application process as soon
as possible by calling 1-800-621-3362. Low interest loans, cash grants,
and housing assistance may be available from agencies associated with
the disaster recovery effort.

VA has information available on its web site
(www.benefits.va.gov/homeloans) that provides basic guidance on options
veterans should consider following a major disaster. Veterans may also
contact their nearest VA Regional Loan Center at 1-877-827-3702.

Counties in Alabama affected by the tornado outbreak and that are
eligible for individual assistance through FEMA include: Autauga,
Calhoun, Cullman, DeKalb, Elmore, Etowah, Franklin, Jefferson, Lawrence,
Marengo, Marion, Marshall, St. Clair, Sumter, Tallapoosa, Tuscaloosa and
Walker.

Counties in Arkansas affected by the tornado outbreak include: Benton,
Clay, Faulkner, Garland, Lincoln, Pulaski, Randolph and Saline.

Counties in Georgia affected by the tornado outbreak include: Bartow,
Catoosa, Coweta, Dade, Floyd, Greene, Lamar, Pickens, Polk, Spalding,
Troup and Walker.

Counties in Mississippi affected by the tornado outbreak include:
Clarke, Greene, Hinds, Jasper, Kemper, Lafayette and Monroe.

Counties in Tennessee declared eligible for individual assistance
include: Bradley, Greene, Hamilton and Washington.