VA understands how stressful it can be to face the possibility of foreclosure, and it is committed to doing everything possible to help Veterans and their families stay in their homes. That’s why, today, VA strongly encouraged mortgage servicers to continue to pause foreclosures of certain VA-guaranteed home loans through Dec. 31, 2024. This targeted moratorium will give Veterans and their families more time to explore all home retention options.
Here’s everything you need to know about how to find support and keep your home
What support options are available to you if you’re worried about foreclosure? With VA’s Home Retention Waterfall, there are a series of steps designed to provide you with multiple options to avoid foreclosure:
- If you’re facing short-term financial difficulties, there are forbearance agreements that could help you avoid foreclosure by temporarily reducing or pausing payments. Under this option, your loan payments will not be forgiven, but you will have the time you need to work through short-term challenges.
- If you’ve missed loan payments, you might be able to arrange a plan to catch up gradually. This is a called a repayment plan.
- If you need further assistance, the next step is a loan modification, which adjusts the rate and term of your loan to make payments more manageable. Under this scenario, a high-interest rate environment may cause your modified mortgage payment amount to increase.
- Finally, if these options aren’t enough and you’re experiencing severe hardship, VA’s new VASP program could be a last-resort option for qualifying Veterans. Through VASP, VA will purchase the modified loan from your loan servicer and then place it in the VA-owned portfolio as a direct loan—therefore making it more affordable.
How do you qualify for VASP?
Importantly, VASP is not something you can apply for directly with VA. Instead, if you exhaust all other home retention options, your mortgage servicer will evaluate whether you are qualified for VASP and submit a request on your behalf.
Who do you call to get the support you need?
If you’re facing financial hardship, you should first contact your mortgage servicer and work with them to explore all available home retention options. If you need additional support, you can always contact VA directly by calling 877-827-3702, option 4, or by visiting the VA Home Loans website for additional information.
VA is here to help you every step of the way. VA helped more than 145,000 Veterans and their families avoid foreclosure in 2023 alone, and it is committed to doing everything in its power to help all Veterans stay in their homes.
Topics in this story
More Stories
Over the past eight decades, VA’s Home Loan program has helped Veterans to secure more than 28 million home loans.
The following is an account from Army Veteran Robert Pryor on how he was able to find and reconnect with the pilot who saved his life in Vietnam.
For many, the G.I. Bill provided a path to the American dream by helping them pursue education, secure employment after military service and purchase a home.
I’m a surviving spouse of a veteran and about to lose our home we built together 33 years ago. He passed and I have no knowledge of how it what if any benefits available to me.
It’s great for helping those who have homes but it crap for those 100% service connected and unable to get a COE cause of time in service but still 100%SC. The system is broke for us that fall through the cracks. Have hard time keeping a rental and can’t buy our own. Loan guarantees are BS.
Information helps regarding foreclosure.
In BOLD print — “How do you qualify for VASP?”
Instead of outlining how a veteran is qualified – this article doesn’t even try –> all it says is, “VASP is not something you can apply for directly with VA.”
Nor does it explain what is required to “exhaust all other home retention options”
Nor does it explain how a “mortgage servicer will evaluate whether you are qualified for VASP”
I am just so happy about this entire “word salad”
VA should also have “in house” expertise and resources to assist those Veterans with home foreclosure issues which are non VA loans – since many are vulnerable to predatory mortgage companies – and vulnerable to becoming “homeless” – particularly senior; disabled: and minority Veterans – and whereas VA Social Workers – such as DC VA Medical Center – are either clueless to assist; and/or provide often misleading and incorrect referral information – but, regardless – no follow -up to aid the Veteran
Wanting to know what programs are available to veterans who has utilized your service to prevent foreclosure, followed the directed advice, and completed the VA form 21-526 EZ but sill lost my home? A victim of Identity theft In the recovery process. Do you know of any programs/agencies or assistance available for veterans to regain home ownership? I’ve tried https://www.va.gov/homeless/
Fellow Veterans, it’s important to be aware that while this article presents VA Loan Guaranty as a helpful resource for those facing foreclosure, the reality is often quite different. From my personal experience and extensive research, I’ve found that VA Loan Guaranty is more focused on protecting the interests of mortgage servicers than truly advocating for veterans.
When you reach out to VA Loan Guaranty for assistance, you may encounter a lack of transparency, evasive responses, and a reluctance to hold mortgage servicers accountable for violations of VA regulations designed to protect borrowers. The VA often defers to the servicers’ actions and interpretations, even when they conflict with the VA’s own circulars and policies.
Furthermore, the new VASP program mentioned in this article, while seemingly promising, lacks clear guidelines and transparency. The VA has not provided comprehensive details about the program to stakeholders, making it difficult for veterans to understand their options and eligibility.
It’s crucial to approach VA Loan Guaranty with caution and to thoroughly document all communications and interactions. Don’t assume they will prioritize your interests as a veteran borrower. Be prepared to advocate for yourself and seek outside support if necessary.
While VA Loan Guaranty has the potential to be a valuable resource, its current practices often fall short of truly empowering and protecting veterans in their time of need. Reforms and increased oversight are necessary to ensure VA Loan Guaranty fulfills its intended mission of serving those who have served our country.
Where was this assistance in 2010 when going through a divorce I tried to keep my home, I tried to get deferment, I tried to get refinancing, I begged Wells Fargo…I had a 15 year mortgage on a $170k home that in 3 years I paid down $30k in principal, The mortgage company said NO. and I lost my home in a short sale of $95k. this was a new home just 3 years old with custom bay windows ($10k) installed after the build. So I lost $40k and $45K of loan guaranty in the short sale.
NEVER use Wells Fargo!!!!!!
My name is Mark Mason,I have a nonprofit program Called Giving 2nd Chance LLC.am a landlord for the VA hospital am seeking financial support so I can obtain some property to house my vets.if you can help me concerning this matter I would fully appreciate it