REAMORTIZATION.When a loan is reamortized, the delinquency is added to the loan balance in order to bring your payments up to date. This increases your loan amount and will also increase your monthly payments. The amount of the payment increase will not be as great if the life of your loan is extended at the same time. Some VA loans and other types of loans may be able to be reamortized.
REFUNDING.If you have a VA loan and the ability to make the mortgage payments, or will have the ability to make the payments in the future, and your mortgage company has decided to continue to foreclose, you may qualify for refunding. The VA has the discretionary authority to buy a loan from the mortgage holder and take over the service. This is called "refunding." If refunding is appropriate, the VA will notify you