HOME LOAN GUARANTY 

ASSISTANCE WITH DELINQUENT HOME LOANS 

Disabilities determined by VA to be related to your military service can lead to monthly non-taxable compensation, enrollment in the 

VA health care system, a 10-point hiring preference for federal employment and other important benefits. Ask your VA 

representative or Veterans Service Organization representative about Disability Compensation, Pension, Health Care, Caregiver 

Program, Career Services, Educational Assistance, Home Loan Guaranty, Insurance and/or Dependents and Survivors’ Benefits.

OVERVIEW 

The Department of Veterans Affairs’ (VA) goal is to ensure each Veteran receives every possible 

opportunity to retain their home or avoid foreclosure. VA urges all Veterans who are encountering 

problems making their mortgage payments to speak with their loan servicer as soon as possible to 

explore options to avoid foreclosure. 

OPTIONS TO AVOID FORECLOSURE 

The following options are generally available to all borrowers to avoid foreclosure: 

• Repayment Plan – The borrower makes their regular installment each month plus part

of the missed installments.

• Special Forbearance – The servicer agrees not to initiate foreclosure to allow time for

borrowers to repay the missed installments.

• Loan Modification – Provides the borrower a fresh start by adding the delinquency to

the loan balance and establishing a new payment schedule.

• Additional time to arrange a private sale – The servicer agrees to delay foreclosure to

allow a sale to close if the loan will be paid off.

• Short Sale – When the servicer agrees to allow a borrower to sell his/her home for a

lesser amount than what is currently required to payoff the loan.

• Deed-in-Lieu of Foreclosure - The borrower voluntarily agrees to deed the property to

the servicer instead of going through the foreclosure process.

Access our home loans website for additional information on VA loans, and to watch videos of 

Veterans who have completed some of the workout options listed above. 
Home Loan Guaranty – February 2015 

SERVICEMEMBERS CIVIL RELIEF ACT 

Veteran borrowers may be able to request relief pursuant to the Servicemembers Civil Relief Act 

(SCRA). SCRA is intended to ease the economic and legal burdens on military personnel during their 

active service. In order to qualify for certain protections available under the Act, the borrower must 

request protection under the Act, and the loan must have originated prior to the current period of 

active military service. SCRA may provide for a lower interest rate, or prevent foreclosure or eviction. 

Please contact your nearest VA Loan Technician at (877) 827-3702 if you have any questions. 

 VETERANS WITH VA GUARANTEED HOME LOANS 

Loan servicers have the primary responsibility of resolving loan defaults, so it is imperative 

borrowers contact their loan servicer as quickly as possible. However, in cases where the 

servicer is unable to help the Veteran borrower, Loan Guaranty has Loan Technicians in nine 

Regional Loan Centers who take an active role in interceding with the servicer to explore all 

options to avoid foreclosure. Servicemembers or Veterans with VA-guaranteed home loans can 

call (877) 827-3702 to reach the nearest Loan Guaranty office where Loan Technicians are 

prepared to discuss potential ways to help save the home. 

 VETERANS WITH NON-VA GUARANTEED HOME LOANS 

For a Veteran or Servicemember with a conventional or sub-prime loan, VA does not have the legal 

authority to intervene on the borrower’s behalf. It is imperative that the borrower contacts his/her 

servicer as quickly as possible. Visit VA’s home loans website or call toll-free (877) 827-3702 to speak 

with a VA Loan Technician for advice on approaches to take with your servicer. 

 NATIONAL CALL CENTER FOR HOMELESS VETERANS 

Veterans who believe they may be facing homelessness can call (877) 4AID VET (877-424-3838) or go 

to our homeless Veterans website to receive immediate assistance from VA. 

OTHER ASSISTANCE 

In addition to the resources offered by VA, the Department of Housing and Urban Development 

(HUD) offers assistance to homeowners by sponsoring local housing counseling agencies. To find an 
Home Loan Guaranty – February 2015 

approved agency in your area, please search online at www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm, or 

call HUD’s interactive voice system at (800) 569-4287.