HOUSINGVA program
VA Loan Foreclosure Avoidance Assistance
VA counsels veterans and surviving spouses who are having trouble making mortgage payments, even when the loan is not VA-guaranteed, and the VA loan technician line is 877-827-3702 (TTY: 711). The options VA lists for avoiding foreclosure and keeping the home are special forbearance, a repayment plan, a traditional, 30-year, or 40-year loan modification, and a VA partial claim. With a partial claim, VA works with the loan servicer to pay the missed payments, and the homeowner repays it when the loan is paid off or the home is sold. A partial claim requires a completed 3-month trial payment plan first, and servicers have until November 28, 2026, to add partial claims to their systems.
Counseling for veterans and surviving spouses, including on loans that are not VA-guaranteed
Step-by-step guide
Where to start: talk to your servicer and VA early
- A VA-backed loan, for the VA optionsThe options to keep the home on this page are for VA-backed loans. VA assigns a loan technician to review a VA-backed loan that is 61 days past due. VA counseling also covers other home loans.
- Why payments stopped, and what you can pay nowVA rules have the servicer find out why payments were missed and whether that is temporary, along with your income, job, and monthly costs. The servicer uses these to work toward a realistic plan to catch up.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); 38 CFR 36.4350(h) (opens in new tab)
Which path fits your situation?
- Talk to your servicer and VA early
Your servicer is the company that collects your mortgage payments. Contact it right away when payments get hard. VA rules require servicers to explain your options and look at your situation before foreclosure starts. VA counsels veterans and surviving spouses on any home loan.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); 38 CFR 36.4350(g) (opens in new tab); 38 CFR 36.4350(h) (opens in new tab); VA Circular 26-25-2 (opens in new tab)
- Keep the home: options through your servicer
VA's preferred order is a repayment plan, then special forbearance, then a loan modification. VA.gov also lists 30-year and 40-year modifications and the VA partial claim. VA tells servicers to offer the option that best fits your situation.
- A hardship that has ended, or time for one that has notFor a loan modification, the cause of the missed payments must be resolved or about to be, and not expected to return. While a hardship is still going on, VA points servicers to forbearance until it passes.
- A payment you can keep upA repayment plan adds part of the missed amount to each regular payment for at least 3 months. A modification needs income that can carry the new payment. The partial claim starts with 3 on-time trial payments.
Source: 38 CFR 36.4319(a) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab); VA Circular 26-25-2 (opens in new tab); VA Homeless Programs: VA Partial Claim Program (opens in new tab); 38 CFR 36.4315(a) (opens in new tab); VA Home Loans: VASP closeout questions (opens in new tab); 38 CFR 36.4301 (opens in new tab)
- Refinance for a lower rate: the IRRRL
An IRRRL replaces your VA-backed loan with a new one at a lower interest rate, or moves an adjustable rate to a fixed rate. A private lender makes it. When the loan is more than 30 days past due, the past-due payments can be part of the new loan, but only with VA approval in advance.
- Your VA-backed loan on the same homeThe IRRRL refinances your current VA-backed loan on a home you live in or used to live in. A second mortgage holder must agree to let the new loan come first.
- VA approval first if you are behindMore than 30 days past due, VA must approve an IRRRL in advance. The lender shows VA why payments were missed, that the cause has been fixed, and that you meet VA's credit standards.
Source: 38 CFR 36.4307(a) (opens in new tab); VA.gov: interest rate reduction refinance loan (opens in new tab); 38 CFR 36.4340 (opens in new tab)
- Refinance using home equity: the cash-out refinance
A cash-out refinance is a new VA-backed loan from a private lender. It can pay off your current loan, VA-backed or not, and can be as much as the home's value from a VA appraisal. When the home is worth more than you owe, the new loan can pay off the old one with the missed payments included.
- Credit, income, and home value that meet VA and lender standardsThe lender reviews your credit and income under VA's standards, orders a VA appraisal, and must show you how much home equity the new loan removes. You also need a COE, and you must live in the home.
Source: 38 CFR 36.4306(a) (opens in new tab); VA.gov: cash-out refinance loan (opens in new tab); VA Form 26-1880 (opens in new tab); 38 CFR 36.4340 (opens in new tab)
- When the home cannot be kept
Your servicer can give you extra time to sell the home yourself, agree to a short sale, or accept a deed in lieu of foreclosure. VA lists these after the options to keep the home. A short sale or deed in lieu can reduce your future home loan benefit until the amount VA lost is repaid.
- A sale the servicer acceptsIn a short sale, the servicer accepts what the sale brings as full payment, even when it is less than you owe. The owner gets no money from the sale.
- Clear title, for a deed in lieuThe servicer considers a short sale first. For a deed in lieu, you sign the home over to the servicer, so you must be able to pass clear title.
Source: 38 CFR 36.4319(a) (opens in new tab); 38 CFR 36.4322(e) (opens in new tab); 38 CFR 36.4322(f) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab)
What to gather, and what it shows VA
| Document | What it shows | How VA gets it | Have it? |
|---|---|---|---|
| Mortgage statement and servicer letters Your latest monthly statement and any letters from your servicer about late payments. | What is past due, and how to reach the servicer | Your servicer sends them. VA rules require a letter, once payments stay late, that explains your options and gives a toll-free number. | Yes |
| Your VA loan number The number VA uses for your VA-backed loan. | Which VA-backed loan is yours | Ask your servicer. VA rules require servicers to give borrowers loan information when asked. | |
| Hardship letter Your short written account of what caused the missed payments and whether it is temporary or has ended. | Why payments stopped | You write it when your servicer asks why payments stopped. It goes to the servicer, not to VA or BeneVets. | |
| Proof of your income now Recent pay stubs, benefit letters, or other records of what your household earns now. | What you can pay each month | Your employer, VA, or other payers issue them. Copies go to your servicer when it asks, not to BeneVets. | Yes |
| Records of what changed Papers that show the change behind the missed payments, such as a layoff notice or a letter cutting your hours. | The cause, and whether it has ended | Keep copies for your servicer. They show whether the cause is temporary or resolved. | Yes |
| Monthly bills and debt statements Recent bills and statements for your household costs and debts, such as car loans, credit cards, and utilities. | Your monthly costs | Your servicer asks about your monthly costs when it reviews you. Copies go to the servicer, not to VA or BeneVets. | Yes |
| Your servicer's application for help The forms your servicer asks you to fill out so it can review you for every option. | Your full situation in one place | Ask your servicer for them. They go back to the servicer with the records it lists, not to VA or BeneVets. | |
| Trial payment plan terms The terms your servicer sets for the 3-month trial before a partial claim. | The trial payments to make on time | Your servicer sets up the trial when it reviews you for a partial claim. | Yes |
| COE, for a refinance The certificate VA issues for the home loan benefit. | Your home loan benefit, for the lender | For a cash-out refinance, request it online, through the lender, or on VA Form 26-1880. For an IRRRL, give the lender the COE from your original loan, or ask the lender to get it electronically. | Yes |
| Income records for a refinance Pay stubs for the most recent 30 days, W-2 forms for the past 2 years, and often federal tax returns for the past 2 years. | Your income, for the lender | VA lists these for a cash-out refinance, plus anything else the lender requires. They go to the lender, not to VA or BeneVets. | Yes |
| Offer or contract from a buyer The signed offer or sales contract from someone buying the home. | What a sale would bring | It goes to your servicer. For a short sale, the servicer checks the sale against the home's value from a VA appraisal before it agrees. | Yes |
| Your deed and any other liens The deed to the home, and papers for any other loans or liens on it. | Whether the title is clear | For a deed in lieu, the servicer checks that you can pass clear title before it accepts the deed. | Yes |
Papers go to your servicer, or to VA when a step says so. BeneVets does not ask for copies of them.
Steps, in order
- Contact your servicer right away
Call the company that collects your payments as soon as paying gets hard. Ask which options it can review you for, and what it needs from you.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); 38 CFR 36.4350(h) (opens in new tab)
- Get help from VA and a VSO
A VA loan technician can talk through your options and help when working with your servicer is hard. Call the toll-free line, 877-827-3702 (TTY: 711), and select 6, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. For VA benefit claims, accredited VSOs help at no cost: Find an accredited VSO near you.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA Home Loans: contact us (opens in new tab); VA.gov: accredited representatives (opens in new tab)
- Gather your papers
Have your mortgage statement, servicer letters, proof of income, records of what changed, and monthly bills together. Copies go to your servicer, not to VA or BeneVets.
- Explain the hardship
Tell your servicer what caused the missed payments and whether it is temporary or has ended. A short letter is one way to do this.
Source: 38 CFR 36.4350(h) (opens in new tab); 38 CFR 36.4315(a) (opens in new tab)
- Ask about a repayment plan or special forbearance
A repayment plan brings the loan current by adding part of the missed amount to each regular payment for at least 3 months. Special forbearance pauses or lowers payments for a set time; after it ends, you pay the missed amount or start a repayment plan.
Source: 38 CFR 36.4301 (opens in new tab); 38 CFR 36.4319(a) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab)
- Ask about a loan modification
A traditional modification adds the missed payments and related legal costs to the loan balance and sets a new payment schedule; with higher interest rates, the new payment could be higher. A 30-year modification resets the loan to 30 years if that lowers the monthly principal and interest, and a 40-year modification extends the term to 40 years. A modification is not a right; the servicer decides under VA rules.
Source: 38 CFR 36.4315(a) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab)
- Ask about the VA partial claim
Ask your servicer whether it offers the VA partial claim yet. You first complete a 3-month trial payment plan. Then VA pays the servicer the missed amount, and you repay VA when you pay off or refinance the loan, or sell the home.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA Homeless Programs: VA Partial Claim Program (opens in new tab)
- Ask lenders about an IRRRL
If a lower interest rate would make the payment workable, ask private lenders about an IRRRL; terms and fees vary, so compare several. More than 30 days past due, VA must approve the IRRRL in advance.
Source: 38 CFR 36.4307(a) (opens in new tab); VA.gov: interest rate reduction refinance loan (opens in new tab)
- Request a COE for a refinance
A cash-out refinance needs a COE. Request it online, through your lender, or on VA Form 26-1880. Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you.
Source: VA Form 26-1880 (opens in new tab); VA.gov: cash-out refinance loan (opens in new tab); VA.gov: how to request a VA home loan COE (opens in new tab); VA.gov: accredited representatives (opens in new tab); 38 CFR 14.627(h) (opens in new tab)
- Ask lenders about a cash-out refinance
If the home is worth more than you owe, a cash-out refinance can pay off the current loan, up to the value a VA appraisal sets. The lender reviews your credit and income and must show you how much equity the loan removes. A VA partial claim is repaid when you refinance.
Source: 38 CFR 36.4306(a) (opens in new tab); VA.gov: cash-out refinance loan (opens in new tab); VA Homeless Programs: VA Partial Claim Program (opens in new tab)
- If you cannot keep the home, ask about a sale
Your servicer can give you extra time to sell the home yourself. If you owe more than the home is worth, the servicer may agree to a short sale and accept the sale proceeds as full payment.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); 38 CFR 36.4322(e) (opens in new tab)
- Ask about a deed in lieu of foreclosure
You sign the home over to the servicer instead of going through foreclosure. The servicer considers a short sale first and checks that you can pass clear title.
Source: 38 CFR 36.4322(f) (opens in new tab); VA.gov: VA help to avoid foreclosure (opens in new tab)
- Get housing help if you may lose your home
If you are homeless or at risk of becoming homeless, call the National Call Center for Homeless Veterans at 877-424-3838, open 24/7. SSVF grants fund housing help for low-income veteran families who are homeless or at risk, and HUD-VASH pairs a rent voucher with VA case management.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA Homeless Programs: SSVF (opens in new tab); VA Homeless Programs: HUD-VASH (opens in new tab)
- Restore your home loan benefit later
After a foreclosure, short sale, or deed in lieu, the amount VA lost must be repaid to restore your future home loan benefit. A VA loan technician can tell you the amount.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab)
Good to know
Call 877-827-3702 (TTY: 711) and select 6, Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. VA counsels veterans and surviving spouses even when the loan is not VA-backed, and can help when working with your servicer is hard.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA Home Loans: contact us (opens in new tab)
After a 3-month trial payment plan, your servicer brings the loan current and VA pays the servicer that amount. You repay the partial claim when you pay off or refinance the loan, or sell the home. VA gave servicers until November 28, 2026, to add it to their systems.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA Homeless Programs: VA Partial Claim Program (opens in new tab)
VA's servicing purchase program, VASP, stopped taking new requests on May 1, 2025, and VA set September 30, 2025, as the last date for VASP payments. The partial claim is VA's newer option.
Source: VA Circular 26-25-2 (opens in new tab); VA Home Loans: VASP closeout questions (opens in new tab); VA Homeless Programs: VA Partial Claim Program (opens in new tab)
VA's home loan programs are the Native American Direct Loan and three VA-backed loans: purchase, IRRRL, and cash-out refinance. A home equity loan or home equity line of credit is not one of them, so it would be a private loan outside the VA program. The VA-backed way to borrow against home equity is the cash-out refinance.
Source: VA.gov: VA home loan types (opens in new tab); VA.gov: cash-out refinance loan (opens in new tab)
VA warns about third-party companies that try to take advantage of homeowners who are behind. Claims that you can skip payments or get very low interest rates can be signs of a misleading offer. Work with VA or your servicer.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab); VA.gov: interest rate reduction refinance loan (opens in new tab)
For a loan closed on or after January 1, 1990, VA asks you to repay what it paid the servicer only if it finds fraud, misrepresentation, or bad faith. After a foreclosure, short sale, or deed in lieu, the amount VA lost must be repaid to restore your future home loan benefit.
Source: VA.gov: VA help to avoid foreclosure (opens in new tab)
BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you
Sources checked September 23, 2026: 38 CFR 14.627(h) (opens in new tab), 38 CFR 36.4301 (opens in new tab), 38 CFR 36.4306(a) (opens in new tab), 38 CFR 36.4307(a) (opens in new tab), 38 CFR 36.4313(e)(4) (opens in new tab), 38 CFR 36.4315(a) (opens in new tab), 38 CFR 36.4319(a) (opens in new tab), 38 CFR 36.4322(e) (opens in new tab), 38 CFR 36.4322(f) (opens in new tab), 38 CFR 36.4340 (opens in new tab), 38 CFR 36.4350(b) (opens in new tab), 38 CFR 36.4350(g) (opens in new tab), 38 CFR 36.4350(h) (opens in new tab), VA.gov: VA help to avoid foreclosure (opens in new tab), VA.gov: VA home loan types (opens in new tab), VA.gov: interest rate reduction refinance loan (opens in new tab), VA.gov: cash-out refinance loan (opens in new tab), VA.gov: how to request a VA home loan COE (opens in new tab), VA.gov: accredited representatives (opens in new tab), VA Home Loans: contact us (opens in new tab), VA Home Loans: VASP closeout questions (opens in new tab), VA Circular 26-25-2 (opens in new tab), VA Homeless Programs: VA Partial Claim Program (opens in new tab), VA Homeless Programs: SSVF (opens in new tab), VA Homeless Programs: HUD-VASH (opens in new tab), VA Form 26-1880 (opens in new tab)