Loan Management

Persons who may qualify for VA-guaranteed loans include:

• Veterans
• Reserve and National Guard Members (called to active duty)
• Active duty Servicemembers
• Current Reserve and Guard members (after six years of creditable service)
• Certain surviving spouses

Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are considered to be active duty members and Veterans, once discharged.

Length-of-service requirements apply, in most cases.

The mortgage servicer has the primary responsibility for servicing the VA-guaranteed loan to resolve the default. When VA decides additional information or action is needed, VA initiates contact with the Veteran to offer financial counseling, discuss loss mitigation options that have been considered, and sometimes serve as an intermediary between the Veteran and mortgage servicer to negotiate a resolution to the default. VA then helps the servicer and the borrower to arrange an appropriate loss mitigation option, such as:

• Repayment Plan: The Veteran may pay a regular payment plus part of the delinquency each month over a period of time until the loan is brought current;
• Special Forbearance: Temporarily suspend payments to allow the Veteran time to sell the property or reinstate the loan;
• Loan Modification: Provide the Veteran a fresh start by adding the delinquency to the loan balance and establishing a new payment schedule;
• Refunding: VA can consider refunding (purchasing) the loan and modifying it to make the payments more affordable to the Veteran;
• Compromise Sale / Short Sale: The Veteran sells their home for an amount less than what is owed at current market value with VA paying the difference, up to the maximum guaranty on the loan; or
• Deed-in-Lieu of Foreclosure: The Veteran voluntarily deeds the property to the servicer to avoid the foreclosure process, with VA paying the difference between the payoff and the net property value.

For more information on this program, visit the Home Loans Information page.

If you have questions:

• Visit the Ask VA (AVA) webpage to ask a question electronically.
• Please contact a Regional Loan Center if you have detailed questions.

To apply for VA benefits and services, view your benefit status, and many more services go to www.va.gov and either logon with your eBenefits sign on or use www.Logon.gov to enroll. VA.gov is a one-stop source for information on Department of Defense and Department of Veterans Affairs benefits and services. Veterans, service members and their family members can conduct self-service transactions such as checking compensation and pension claim status information, enrolling in GI Bill, and obtaining copies of civil service preference letters, military records (DD214), and other personal information. For further information visit the VA.gov website.