Tips . 
 to Avoid 
 Foreclosure 
 
 Pre-qualify 
 lotential 
 
 pOlClllliU An assumable VA loan is 
 
 buyers. very attractive to potential 
 
 buyers and may make it easier for you to sell 
 your home. However, if you transfer your loan 
 without obtaining a release of liability, you are 
 responsible for the entire term of the loan, 
 even if the assumer defaults. So don’t let that 
 loan come back to haunt you by letting a 
 stranger assume it. Your buyers should be 
 qualified and you should obtain a release of 
 liability from VA before you let your loan be 
 assumed. If you’ve already sold your home 
 you may still obtain a release of liability if the 
 buyer qualifies. Contact your local VA office. 
 
 “To care for him who shall have borne the battle, 
 and/or his widow, and his orphan.”— ABRAHAM LINCOLN 
 
 
 We offer 
 
 financial If you find yourself having 
 Counseling, trouble meeting your 
 mortgage obligation, contact VA for assistance. 
 We can help you budget and communicate with 
 your lender to set up a repayment plan. 
 
 rom In cases where the default 
 lender. is temporary and the lender 
 will not cooperate or listen to you, VA may be 
 able to buy your loan from the lender. You 
 would then make your payments to VA. This 
 program requires qualification under VA income 
 and credit standards. 
 
Payon) 
 
 Compromise 
 
 Sale (Short If there’s a problem making 
 
 payments, it’s always better 
 to sell a property than to allow it to go into 
 foreclosure. VA’s Compromise Sale or Short 
 Payoff Program makes it easier for owners to 
 avoid foreclosure by selling their homes 
 quickly. 
 
 When you receive an offer that’s lower than 
 your total loan indebtedness, you can ask VA 
 to approve a compromise sale. We’ll review 
 the situation with your mortgage company, 
 and if approved, pay the difference between 
 your mortgage balance and the proceeds of 
 your sale. 
 
 We then arrange for you to pay that difference 
 back to us. If you had let the property go into 
 foreclosure, and VA had to pay a claim to 
 the lender, you would usually owe us a larger 
 amount than with a pre-arranged, compromise 
 sale. 
 
Deed in 
 
 In this program, VA will 
 consider taking the deed to 
 a home instead of 
 foreclosing on it. The 
 property is deeded to VA, releasing the 
 homeowner from debt. 
 
 This program is for extreme situations, where 
 there is no foreseeable income due to a 
 hardship such as job loss. While it allows you 
 to avoid foreclosure, it also means you lose 
 any equity in the property. We encourage 
 owners to think very carefully before choosing 
 this alternative, and require written justification 
 as to why it’s necessary. If a deed is accepted 
 in lieu of foreclosure, you would be required 
 to vacate the property within 30 days. 
 
 The Deed in Lieu of Foreclosure Program is 
 available only to mortgage holders who have 
 clear title (e.g. no second mortgages) to their 
 property. 
 
 lieu of 
 Foreclosure 
 (QuitClaim 
 Deed) 
 
Department of Veterans Affairs 
 Box 25126 
 
 155 Van Gordon Street 
 Denver, CO 80225 
 
 We can’t 
 
 help if We Always notify VA if you move, 
 can t find or if your loan status has 
 you. changed (e.g. you’ve sold 
 
 your home and the loan was assumed by a 
 new buyer). 
 
 If you’ve 
 
 g°t a The Department of Veterans 
 
 problem, Affairs has several programs 
 
 talk to US. that are designed to help 
 veterans (and non-veteran homeowners who 
 have a VA loan) avoid foreclosure. 
 
 For more information on any of the programs 
 described, contact the Department of 
 Veterans Affairs Regional Loan Center 
 Toll-Free at 1-800-319-9446. 
 
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