| Many have experienced job loss in the 2008 | | | | Program has a proven track record for saving |
| recession. And, families in 2009 are finding it | | | | loans from foreclosure. Through the VA Outreach |
| harder and harder to pay bills on time and in full. | | | | Program, borrowers are educated on improved |
| What's more home values are shrinking and | | | | VA mortgage options which may be particularly |
| mortgage delinquencies are rising. U.S. housing | | | | beneficial to those experiencing financial distress |
| market is in crisis. Bank-owned properties are for | | | | and those who are in loan default. |
| sale on practically every street, and Q1 2009 | | | | One of the newest VA outreach missions is to |
| economy is showing no relief. Foreclosure is | | | | contact veterans experiencing financial distress |
| everywhere. | | | | due to high monthly mortgage payments and |
| A foreclosure happens when a borrower defaults, | | | | inform them of the latest improved options for |
| or fails to repay a mortgage debt and the lender | | | | refinancing at lower rates with VA loans. Since the |
| proceeds to sell the property that served as | | | | Veterans' Benefits Improvement Act of 2008 |
| collateral for the loan. It goes without saying that | | | | was signed into law in October of 2008, |
| a foreclosure is not pleasant for anyone. The | | | | VA-eligible borrowers have been able to get up to |
| homeowner loses a home and the lender is left | | | | 100% refinancing with VA loans. In other words, |
| with the unpaid debt and a property that may or | | | | no money down is required for refinancing with a |
| may not sell. And, building enough credit to qualify | | | | VA loan. |
| for a mortgage again after foreclosure is a huge | | | | A VA mortgage counselor will most likely discuss |
| undertaking. | | | | one hundred percent refinancing with the VA |
| But, foreclosure can be avoided for many VA | | | | Home Loan Program whether a veteran has a |
| borrowers through mortgage counseling. | | | | VA loan or some other type of loan. The best |
| Through VA Outreach, mortgage counseling is a | | | | time to take advantage of this option is before |
| resource against foreclosure for VA-eligible | | | | default or delinquency occurs. Refinancing at 100% |
| borrowers. The Program provides extensive | | | | with VA loans can eliminate financial stress for |
| mortgage counseling services as a benefit for | | | | many veterans, save mortgages from |
| those with military affiliation. | | | | foreclosure and even provide cash out of equity |
| The Program provides outreach to two different | | | | to pay down debts or make home |
| groups of veterans: those with VA loans and | | | | improvements. |
| those with other types of loans, in efforts to | | | | Another refinance tool that a VA Outreach |
| keep the military affiliated in their homes. | | | | counselor might discuss is the VA Streamline |
| Veterans and active-duty personnel can better | | | | Program. With VA to VA Streamline loans a |
| deal with financial crises by applying the program's | | | | veteran's mortgage payment record must be |
| proven methods. | | | | good, but there is no need for an appraisal, |
| In some situations, a VA counselor can intercede | | | | income verification or full credit report. Streamlines |
| with the lender on the veteran's behalf to pursue | | | | are good for someone whose credit, income and |
| mortgage-saving options such as repayment | | | | or home value has been negatively affected by |
| plans, forbearance, and even loan modifications. | | | | the down economy. |
| Each offers an alternative to foreclosure. | | | | Since 2000, the VA Outreach Program has |
| The VA counselors deserve a lot of credit for | | | | assisted more than 74,000 veterans, active-duty |
| the VA Outreach Program's success. There are | | | | personnel and surviving spouses. This translates as |
| counselors in nine regional loan centers throughout | | | | a savings of $1.5 billion in saved mortgages due to |
| the country. Each counselor is considered an | | | | foreclosure-alternative counseling. |
| expert who can assist people in avoiding | | | | In the end, repayment plans, forbearance, loan |
| foreclosure through advice and special financial | | | | modifications, 100% refinancing, and VA |
| planning. Counselors can also assist veterans with | | | | Streamlines can all be successful in saving a VA |
| other financial problems. | | | | loan from foreclosure. And, the VA outreach |
| The VA mortgage counseling services are free to | | | | program continues to reach out to veterans who |
| veterans and active military personnel. The | | | | face foreclosure. |