I Have No Money to Pay My Bills: Options for Avoiding Foreclosure

Are you struggling to make ends meet and facing financial difficulties? If you have a VA-guaranteed loan, you may be eligible for assistance in avoiding foreclosure through various programs and options offered by the Veterans Affairs (VA). In this article, we will explore some of these options that can help you stay in your home.

Veterans Affairs Servicing Purchase Program

Starting May 31, 2024, if you have a VA-guaranteed loan, you may be able to participate in the Veterans Affairs Servicing Purchase program. This program allows the VA to purchase your modified loan through your loan servicer. With this option, you can add any missed mortgage payments and related legal costs to your total loan balance.

Loan Modification

Sometimes, a fresh start is needed. A loan modification can help you catch up on missed payments by modifying your existing loan terms. This plan allows you to add the missed mortgage payments and any related legal costs to your total loan balance.

Special Forbearance

A special forbearance gives you some extra time to repay missed mortgage payments. During this period, you will not be required to make regular payments, but you must contact your servicer to discuss how you will make up for the missed payments once the forbearance ends.

Repayment Plan

If you have missed a few mortgage payments, a repayment plan can help you get back on track. This plan allows you to make regular payments plus an added amount each month to cover the missed payments.

Options for Avoiding Foreclosure

In addition to these options, there are six general ways to try to avoid foreclosure:

1. Loan modification

2. Special forbearance

3. Repayment plan

4. VA loan servicing purchase program

5. COVID-19 Refund Modification program

6. Foreclosure prevention programs

These options may vary by servicer, so it is essential to contact your servicer to discuss which option is best for you.

VA Loan Technicians' Assistance

Our VA loan technicians can help you determine which option is most suitable for your situation and provide guidance throughout the process. With their expertise, you can rest assured that you are taking the right steps to avoid foreclosure.

In conclusion, if you have a VA-guaranteed loan and are facing financial difficulties, there are options available to help you stay in your home. By understanding these options and seeking assistance from a VA loan technician, you can avoid foreclosure and keep your home.

I have no money to pay my bills