VA Loans and Foreclosure Avoidance
Nobody applies for a VA home loan expecting to get into financial trouble. The last thing on a VA loan applicant’s mind when they apply for the VA mortgage on a first home is the loss of a job, bankruptcy or other problems.
But even in those most optimistic days of buying a home, the borrower should be aware of a few important options in case the worst does happen. Loan officers and real estate agents alike–at least the best ones–pass on this important information to their clients.
The first thing a VA borrower should know about dealing with a financial crisis that may threaten home ownership? The telephone number to the Department of Veterans Affairs financial counselors. That number is 1-877-827-3702 and lets VA borrowers reach a Loan Service Representative, who can help.
Letting the VA know early in the financial crisis is very important. Not only can a VA loan rep offer advice and suggestions on how to avoid foreclosure, but in some cases may be able to work with you and the lender on your behalf to straighten things out. But the longer you wait to get help, the more difficult it is to fix the problem.
There is another reason to get in touch with the VA as quickly as possible–as sad as it is for a home owner to face losing their home, sadder still is the willingness of some predatory businesses and scam artists to take advantage of people in these bad situations. The VA warns borrowers to beware of those who come to you with high-pressure tactics to get borrowers to sign up for programs they don’t need and (when they know all the facts) shouldn’t want.
The Department of Veterans Affairs can offer help and advice for these situations, too. What’s a legitimate offer of help versus a scam or rip-off? The VA can help you determine which is which. The VA warns home owners about three basic scams used to cheat or trick veterans out of their hard-earned money and/or property. We’ll examine these scams in the next blog post.