What happens if I default on a VA loan?

Defaulting on a VA loan can result in foreclosure, meaning that a homeowner loses their house to the lender. Just like regular mortgages, these veteran mortgages must be paid on time. If a borrower is facing financial difficulty then he or she is given a short grace period to repay their mortgage.Click to see full answer. Then, what happens if I default on my VA home loan? VA Mortgage Defaults As with any other foreclosure, when your VA-guaranteed mortgage is foreclosed, your credit score suffers. You can, however, regain full VA mortgage eligibility if you make good on the government’s loss from your mortgage default.Similarly, what happens in a VA foreclosure? It is no coincidence VA loans have the lowest foreclosure rate in the country. A foreclosure can happen when a borrower defaults or cannot repay a mortgage debt, and the lender chooses to take possession of the property to recover some of the loss. Beside this, how long does it take to foreclose on a VA loan? Under federal law, most homeowners—including those with VA loans—get 120 days to try to work out an alternative to foreclosure before the foreclosure can begin. But if you’re not able to work out one of the options above or another loss mitigation option, the foreclosure will start.Can you get a VA loan after a foreclosure?VA Loans are more lenient than conventional when it comes to your credit history. You can be eligible for a VA Loan two years after a Chapter 7 bankruptcy discharge; one year after filing a Chapter 13 bankruptcy; and two years following a foreclosure. Some lenders have no required waiting period following a short sale.