Veterans Benefits Administration Circular 26-20-18 for May 15, 2020
Department of Veterans Affairs
May 14, 2020 Washington DC
Extended Foreclosure Moratorium for Borrowers Affected by COVID-19
1. Background and Purpose. On March 27, 2020, the President signed into law the
Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), Public Law 116-136. The CARES Act protects borrowers with Federally-backed mortgage loans who are experiencing financial hardship due to the COVID-19 national emergency. The purpose of this Circular is to extend the foreclosure moratorium.
2. Moratorium on Foreclosure. The CARES Act prohibited loan servicers from initiating any judicial or non-judicial foreclosure process for the 60-day period beginning March 18, 2020. In light of the ongoing COVID-19 national emergency and its impact on Veteran borrowers, properties secured by VA-guaranteed loans are subject to a moratorium on foreclosure through June 30, 2020. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process.
3. Rescission: This Circular is rescinded April 1, 2021.
By Direction of the Under Secretary for Benefits
Jeffrey F. London
Executive Director, Loan Guaranty Service
Distribution: CO: RPC 2024
SS (26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2024)