Borrowers who apply for VA mortgages don’t buy their homes with the expectation of getting into financial trouble. Nobody plans to fall behind on their VA loan payments, face default or risk foreclosure. But even in the best of economic times, job loss or unexpected circumstances can change even the best-laid plans.

For borrowers who get into financial trouble, the VA has plenty of advice on what to do in order to avoid going into default and foreclosure. To save a home purchased with a VA guaranteed loan, acting quickly is the first line of defense. The Department of Veterans Affairs urges home owners to call the nearest regional VA loan center to get help at the first indication of financial difficulty.

Some borrowers wait, hoping things will improve, a new job will be found or some other way out of money trouble will present itself. But it’s clear from the following VA advice that the sooner you act, the better off things will be. To avoid foreclosure or prevent it from moving forward, the VA advises borrowers to take one of the following steps:

Pay The Delinquent Loan Amount

According to the Department of Veterans Affairs Roanoke Regional Loan Center official site, “Under most circumstances, GI loan holders are required to accept payment of the full delinquency and reinstate the loan. The delinquency may include certain legal costs if you are already in foreclosure. Many holders require certified funds for reinstatement.”

Arrange Forbearance or a Repayment Plan

Contact your loan officer to resolve your mortgage problems by working out a payment plan to repay the delinquent loan amount over time along with the usual mortgage loan installment payments. A formalized version of this is known as a forbearance, but your lender may be able to make a less formal agreement with you in order to prevent foreclosure. It’s important to know that no matter how formal or informal such arrangements may be, the VA cannot force a lender to agree to specific terms of a forbearance or repayment program.

Seek State Or Local Payment Assistance

Does your state or local government have a homeowner bailout program that could temporarily pay some or all of your mortgage payment? Your nearest VA loan center can provide you with the details on such programs if they exist in your area. The VA cannot provide payment assistance–no money is available from the Department of Veterans Affairs–but it can help get you in touch with those who can.

There are other VA-advised options for those who need them; we’ll cover more of them in our next blog post. For direct VA assistance, call the VA at 1-800-827-l000