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Chapter 38 guarantees attempts to Loss Mitigation work options. There is actually a higher standard applied for assistance to the Veterans than conventional loans and even other government backed loans. If they find Loss Mitigation is not an option they proceed to prompt foreclosure. They are still encouraged to utilize available workout options even after the action to foreclosure is file.

VA oversees the foreclosure process by reviewing all cases referred for foreclosure to determine the adequacy of servicing on the loan. If you do not participate in the Servicer Appraiser Processing Program (SAPP), VA issues the Notice of Values for the property. VA may recommend postponing a foreclosure action if a technician determines that a loss mitigation option is possible or that there is substantial equity.


If foreclosure is the only available option, you must follow state foreclosure law, schedule the foreclosure sale, order an appraisal, determine net value, determine the foreclosure sale bid, and report foreclosure sale events to VA.

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