Resources for Veterans Having Difficulty Making Mortgage Payments

Many Veterans don’t realize that there is assistance available to those who may be having difficulty making their monthly mortgage payments. In this article, we give a brief overview of the options available to those that may be struggling to make ends meet and provide some resources that every Veteran should know about when trying to avoid foreclosure.  

What options are available?     

There are 6 basic options available that can be worked out with a lender that should be considered.   

*Repayment Plans allow borrowers to pay an extra amount every month to catch up on past missed payments. Although this may not be possible for everyone, it is a great way to make up past-due amounts and avoid foreclosure.  

*Forbearance is when the lender allows you to stop making payments for a set amount of time to avoid delinquency. This allows some extra time to catch up without having to worry about missing these payments.  

*Loan Modifications will change the terms of the loan and your monthly payment amounts to make them more affordable. This can be used as a way to get your mortgage back on track and address the past due amount.   

*Additional time may be granted by the lender to arrange a private sale. This option delays foreclosure and provides some time for the borrower to sell the home instead.  

*A Short Sale will allow the borrower to sell the home for less than they owe on the loan. However, you shouldn’t let the name fool you, this option does take time to process and the difference between the sale price and what you owe can, in some instances, be counted as income on your tax return.  

*Deed-in-lieu of Foreclosure is when the borrower voluntarily gives the lender the deed to the property and may help them avoid being responsible for any amount left remaining on the mortgage.  

Avoiding Foreclosure  

Veterans who are having difficulty making their monthly mortgage payments or facing foreclosure may be eligible for assistance from the Department of Veterans Affairs (VA), even if you don’t have a VA loan.  

The VA offers free financial counseling to all Veterans and their spouses as well as loan technicians for those who have VA loans. These technicians can help explore options and guide you through working with the lender.  

If you have found it hard to make your mortgage payments and are facing foreclosure, you must act quickly.  Here a few steps to take right away:  

1. If you have a VA Loan, request to speak to a VA Loan Technician. You can call 877-827-3702 to schedule an appointment with a regional loan centers. A technician is automatically assigned to any loans that are 61 or more days past due.  
2. Speak to a Department of Housing and Urban Development (HUD) Housing Counselor . You can find one near you by searching HUD’s nationwide network.   
3. Contact your mortgage company or lender and discuss your situation. It’s always best to communicate with them and work out a plan. Try to be as open and honest as possible.  
4. Seek additional assistance – LINK to VS Article-. Veteran Saves has put together a list of housing resources for Veterans that can be used to find organizations that provide information, guidance, and financial assistance when needed.  Many states also provide state-run mortgage assistance programs for Veterans. Check your state to see what is available.  
5. Watch for foreclosure relief scams and fake legal help. Do your homework before entering into any agreements for assistance.    

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