VA help to avoid foreclosure
If you fall far behind on your mortgage payments, your mortgage servicer (the company that handles collecting the money for your lender) can take your house to cover the money owed. This process is called foreclosure. Find out how our VA loan technicians can help you avoid foreclosure and keep your house.
Get the latest information about concerns like managing VA debt, or paying your VA copays or VA-backed home loan during this time.
Go to our coronavirus FAQs
Can I get VA financial counseling to help avoid foreclosure?
-
If you’re a Veteran or the surviving spouse of a Veteran, we’ll provide financial counseling—even if your loan isn’t a VA direct or VA-backed loan.
-
If you have a VA direct or VA-backed loan, you can contact us anytime to request that we assign a VA loan technician to your loan. Our technicians can offer you financial counseling and help you deal with your servicer (or work with you directly in the case of a VA direct loan).
-
If you have a VA direct or VA-backed loan and it’s 61 days past due, we’ll automatically assign a VA loan technician to your loan.
What should I do if I’m having trouble paying my mortgage?
If you’re having difficulty making your mortgage payment, contact your loan servicer right away. This is your chance to find a solution that might work for your scenario.
If you’re nervous about contacting your servicer, or if you’d like our help and advice, please contact a VA loan technician at 877-827-3702. You can also email us at LGYLANational.VBACO@va.gov (please include the name and address on the loan).
Be careful about offers to help you make up back payments
If you’re behind on your mortgage payments and you get this type of offer from someone you don’t know, contact the servicer of your mortgage or your nearest VA regional loan center for advice. They can let you know if it’s an honest offer.
How can I avoid foreclosure?
There are 6 general ways you can try to avoid a foreclosure. Our VA loan technicians can help you figure out which option is best for you. Contact a VA loan technician at 877-827-3702.
These are your options for trying to avoid foreclosure:
-
Repayment plan: If you’ve missed a few mortgage payments, this plan lets you go back to making your regular payments, with an added amount each month to cover the ones you’ve missed.
-
Special forbearance: This plan gives you some extra time to repay the missed mortgage payments.
-
Loan modification: Sometimes you need a fresh start. This plan lets you add the missed mortgage payments and any related legal costs to your total loan balance. You and your servicer then come up with a new mortgage payment schedule.
-
Extra time to arrange a private sale: If you need to sell your home, this plan lets you delay a foreclosure so you have time to sell.
-
Short sale: If you owe more money than your house is worth, your servicer might agree to a short sale. This means the servicer will accept the total proceeds from the home sale (even if it’s less than the full amount you owe on the mortgage) as full payment of the debt you owe. Note: This option could result in a loss or reduction in your future home loan benefit. Contact a VA loan technician at 877-827-3702 for more details.
-
Deed in lieu of foreclosure: This plan lets you avoid the foreclosure process by signing over the deed to the home to your servicer. The home will then belong to the servicer. Note: This option could result in a loss or reduction in your future home loan benefit. Contact a VA loan technician at 877-827-3702 for more details.
If I can’t avoid foreclosure, will I have to pay back my loan?
If your loan closed before January 1, 1990, and we have to pay back the amount of your loan to the servicer, you’ll need to pay this amount back to the government.
If your loan closed on or after January 1, 1990, you’ll have to pay back the amount of your loan if we find evidence of fraud, misrepresentation, or bad faith on your part.