Owning a home backed by the VA Home Loan Program is one of the most valuable benefits earned through military service. But when financial hardship hits—whether from job loss, medical challenges or other unexpected life events—keeping up with mortgage payments can become difficult.  

The good news: foreclosure is not inevitable. This final story in our National Financial Awareness series shares six steps Veterans can take to help retain their VA-guaranteed homes. Veterans with VA-guaranteed loans have access to tools, protections and support designed to help them stay in their homes. 

Communicate early 

Contact your loan servicer as soon as you think you may have trouble making a payment. Many Veterans hesitate, but servicers can’t help if they don’t know there is a problem. Early communication can give you more options and help prevent the situation from escalating.  

VA home loans come with additional oversight and assistance. VA can work with servicers to help Veterans avoid foreclosure. 

You can also contact a VA loan technician directly by calling 877-827-3702 or using the online ServiceNow portal to discuss your case. It only takes a few minutes to create an account and send a message. A VA loan technician can advocate on your behalf and help make sure your servicer offers all available solutions.   

Be careful of scammers who may offer fast fixes that can rob you of the equity you have built in your home. Communicate only with your servicer, a VA loan technician,or another trusted organization. Use caution if the company asks you to pay a fee for their services

Explore loss-mitigation options 

If you’re behind on your mortgage payments, several options may help you avoid foreclosure: 

• Special forbearance: This plan temporarily reduces or pauses payments while you recover financially. Missed payments are not automatically added to the end of your loan. You will need to work with your servicer to arrange repayments after the special forbearance ends. 
• Repayment plans: This option allows you to spread missed payments over time instead of paying them all at once. 
• Loan modification: This option adjusts your loan terms to make payments more affordable.  
• Partial claims: This option allows VA to pay your loan servicer for missed payments and bring your loan current without requiring you to repay the amount immediately. You repay the missed payments only when you pay off your main mortgage, sell, or refinance the home. Unlike some modifications that raise your interest rate, this program helps you keep your original loan terms. 
• Short sale: If you owe more than your home is worth, your servicer may support a short sale. In a short sale, the servicer accepts the total proceeds from the home sale, even if the amount is less than the full mortgage balance, as full payment of the debt. This option could result in a loss or reduction in your future home loan benefit, so contact a VA loan technician at 877-827-3702 before making a decision. 
• Deed in lieu of foreclosure: This option allows you to avoid the foreclosure process by signing over the deed to your home to your servicer. The home then belongs to the servicer, and you can leave the property. This option could result in a loss or reduction in your future home loan benefit, so contact a VA loan technician at 877-827-3702 before making a decision.

Use free financial counseling 

Free professional housing counseling can help you decide what to do next. A counselor can help you understand your finances, prioritize expenses and negotiate with your servicer.  

Veterans may be able to use these additional, free or low-cost counseling resources: 

• Veterans Benefits Banking Program (VBBP): Connects Veterans with free, personalized counseling sessions with accredited financial counselors who can help create budgets and improve credit. Learn more at https://benefits.va.gov/benefits/banking.asp. 
• U.S. Housing and Urban Development (HUD): HUD provides free or low-cost financial counseling for Veterans through HUD-certified housing counseling agencies. Call 800-569-4287, or visit HUD.gov to search for an agency near you. 
• Supportive Services for Veteran Families (SSVF): Provides grants to local nonprofits that help very low-income Veterans at risk of losing their housing. Services include housing counseling, case management and temporary financial assistance for rent or mortgage payments. You can find more information about SSVF at https://department.va.gov/homeless/supportive-services-for-veteran-families/. 
• National Foundation for Credit Counseling (NFCC): Offers low- or no-cost certified credit counseling to help Veterans manage debt and prevent foreclosure. Call 800-388-2227 to learn more.

Know your legal protections 

Veterans may also have protections under laws like the Servicemembers Civil Relief Act, which can limit interest rates and provide foreclosure protections for active-duty service members. 

Even if you are no longer on active duty, check whether any protections apply to your situation.

Consider selling before foreclosure 

If keeping the home is not realistic, selling it may be a better alternative than foreclosure. If your home is worth less than what you owe, VA offers options like a short sale, which can help you avoid the long-term credit damage of foreclosure.

Stay organized and proactive 

Keep records of all communications, payments and documents. Respond quickly to notices from your servicer or VA. Missing deadlines can limit your options.

You earned this support. Use It 

The VA Home Loan Program isn’t just about helping Veterans into a home—it’s about helping them stay there. Preventing foreclosure is a priority, and people and programs are ready to help. 

If you’re facing financial difficulty, acting early and using VA resources can make all the difference. 

Need help now? 

Contact your loan servicer or call VA directly at 877-827-3702 to speak with a loan technician who understands your situation and can help you find a path forward.