When a veteran experiences a financial hardship and falls behind on their mortgage payments, the Department of Veterans Affairs can help out the veteran by purchasing the loan from the private lender. The Department of Veteran Affairs will only step in to do this if the veteran can demonstrate the ability to pay now or the ability to pay in the near future. Refunding gives Veteran Affairs the flexibility to consider options to help save a home that a current lender would not be able to consider. This is a rare process because most lenders prefer to work out the problems with the homeowner rather than selling the loan to the Veterans Administration and giving up future income from that loan.

In circumstances in which the lender does not have any other foreclosure alternatives, they may allow the Veterans Administration to purchase the loan to try and save the borrower's home. It is important to note that Department of Veterans Affairs will not consider a refund on loans that have been in default for six months or longer. Loans in default for six months or longer are considered to be an insoluble default and will result in foreclosure proceedings against the borrower, unless another arrangement can be worked out before that time.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.