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VA Mortgage Loan: Avoid Payment Hassles To Keep Your Credit Clean

VA loans are magnificent financial products as they provide fantastic benefits for veterans on mortgage loans. However, there are certain problems that you need to be aware of in order to keep your cr...

VA loans are magnificent financial products as they provide fantastic benefits for veterans on mortgage loans. However, there are certain problems that you need to be aware of in order to keep your credit clean. Due to the nature of these loans and the possibility for lenders to purchase and sell these loans, avoiding certain payment hassles is mandatory to keep your credit clean. Let’s analyze this issue and the ways to get around it.

VA Loan Debts Can Be Purchased

It is important to note that a mortgage VA loan can be sold from one lender to another due to the regulations that define how VA loans work. Not everybody knows this and though there has been a lot of information provided lately to veterans as regards to this issue, it is still necessary to do this more efficiently to avoid the problems associated with the sudden sell of a VA mortgage loan.

What are the problems that this issue can cause? Simple, when the loan is sold, the new and old lender need to notify the borrower of this fact. They always do but sometimes the timing is not efficient or the actual notifications do not take place due to unexpected circumstances. Therefore, it is important to know how to prepare yourself in the event that your VA loan is sold and you have to pay your monthly installments to another creditor.

Non-Payment Notice

It is possible that you receive a non payment notice from the new lender if you failed to receive the prior lender modification notice and you send the payment to the previous lender or if for some reason the notice is not received on a timely manner. In any case, the problem is that though the payment was delivered, the reception of the payment was not completed due to the mix-up.

Immediate Counter-measure

Truth is that regulations establish that the transfer of the debt is only legally perfected once the debtor receives proper notice of the transfer. And though the debtor cannot oppose to the passing on of the debt, a payment sent to the previous debtor must be considered valid if the notification was not received. This is what the law states; however, as explained above, there are problems that can still arise.

Since the new lender may ignore the lack of proper notification, it is possible that the non-payment notice is sent if they do not receive payment and that they notify the alleged delinquency to credit bureaus. That would be reflected on your credit report and damage your credit score. That is why, as soon as you receive a non-payment notice, you should contact the new creditor immediately.

You should send a written notice explaining the situation and providing proof of the payment made to the previous lender. At this point, it is up to them to resolve the problem. Nevertheless, if you fail to communicate the slip-upFeature Articles, your credit report will remain incorrect and your credit score lowered due to a wrongful entry.

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Melissa Kellett has a Master in Finance and has been a financial consultant for years. She specializes in Loans for Bad Credit people and also in helping people to get approved for Personal Loans, unsecured loans, Personal Loans Poor Credit, no credit check loans, student loans among many other financial products. Visit her site at

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