24 Apr VA Home Loan Foreclosure & How To Get Help
Losing your home to foreclosure can be a traumatic experience. And, for military members and Veterans who have already sacrificed a lot for their nation, going through a foreclosure can be quite challenging.
If you cannot make timely payments on a VA loan, there are other options than foreclosure. Foreclosure prevention tools are provided by the Department of Veterans Affairs (VA).
You will learn everything you need to know about avoiding VA foreclosure and what to do when it occurs.
If I can’t pay my mortgage, what should I do?
The best thing you can do if you are having trouble paying off your mortgage is to contact your loan provider as soon as possible. If you cannot repay the loan, do not hesitate to let them know. They will assist you in resolving the issue. The VA has incorporated a number of tools to assist service members who are facing foreclosure. It is, therefore, best to contact them first.
Amidst all this, you might receive multiple offers to help you make the back payments. However, it’s best to stay clear of these false offers. If you receive such an offer, call your regional VA office to ensure the offer is valid.
Is There a Way to Avoid Foreclosure?
Foreclosure can be avoided in several ways. Financial counseling and contacting a VA loan technician are the first steps in the process. Therefore, informing the VA before going to anyone else is wise.
Veterans or surviving spouses of Veterans can contact the VA anytime for financial assistance. Their VA loan technician can provide financial counseling even if you have an ongoing non-VA loan. Additionally, the department will automatically assign a technician to you if you have yet to pay on an ongoing VA home loan for 61 days.
You can avoid foreclosure in six ways with the help of the department.
- The VA will propose a new repayment plan, or
- The missed installment will be extended, OR
- You can start fresh by receiving a new mortgage payment schedule from the technician
- You’ll have extra time to sell the house, or
- In the event that your house is worth less than what you owe to the VA, they will accept the total proceedings of
- your house and close the loan. In this case, you might be unable to get another VA loan, or you might not be able to get one at all.
If you want to avoid foreclosure, you can sign over the deed of your home to the provider.
Here’s a brief overview of all the options mentioned above.
As a result, military members and veterans who have taken out VA loans and are experiencing financial difficulties should not give up hope. To help service members avoid foreclosure, the Department of Veterans Affairs (VA) has implemented various foreclosure prevention tools. If you cannot make payments, contact your loan provider as soon as possible. Financial counseling and assistance should be sought from the VA rather than false offers. In order to avoid foreclosure, VA offers six options, including a new repayment plan, an extended missed payment, a new mortgage payment schedule, additional time to sell the house, closing the loan on the total proceeds of the house, or signing over the deed to the lender. Military members and Veterans can avoid foreclosure with VA assistance, and with the VA’s help, they can stay in their homes.