It's no secret the recession throughout 2008 has affected jobs and, in turn, some families are struggling in 2009 to make ends meet. Due to shrinking home values and rising delinquencies, the U.S. housing market crisis intensified in late 2007 and came to a head in 2008 causing a surplus of bank-owned properties which helped fuel the mortgage crisis in November of 2008. And, in early 2009 many Americans have experienced a foreclosure, and are now working to build back enough credit to qualify for a mortgage again.

A foreclosure happens when a borrower defaults, or fails to repay a mortgage debt, and the lender proceeds to sell the property that served as collateral for the loan.

Needless to say, a foreclosure is not typically a pleasant experience for a homeowner or a lender, but it may be unavoidable in certain circumstances. Perhaps if all loan programs came with mortgage counseling similar to that of the VA Loan Program's there might not be as many foreclosures.

The VA mortgage counseling through the VA Outreach Program is a resource against foreclosure for VA-eligible borrowers. The outreach program is an extensive mortgage counseling service available as a benefit for those with military affiliation. The program reaches out to two different groups: veterans with VA loans and veterans with other types of loans, in efforts to keep veterans in their homes. Veterans and active-duty personnel can better deal with financial crises by employing the program's proven methods.

Since 2000, VA counselors have helped 74,000 veterans, active-duty members and survivors keep their homes. The Program has generated a savings of $1.5 billion in saved mortgages due to foreclosure-alternative counseling.

Depending on the circumstances, VA counselors can intercede with the lender on the veteran's behalf to pursue mortgage-saving options such as repayment plans, forbearance, and even loan modifications. Each of these options offers an alternative to foreclosure and allows a veteran to keep a home.

Much of the credit for the success of the VA Outreach Program can be given to the VA counselors themselves. Located in nine regional loan centers throughout the country, the counselors are trained to assist people in avoiding foreclosure through advice and special financial arrangements. Counselors are also educated in assisting veterans with other financial problems.

Veterans who own homes through the VA Home Loan Program, like many of their civilian counterparts, can feel the effects of a down economy. However, one factor that may contribute to veterans' resiliency in a recession is that VA borrowers have access to the free mortgage counseling with its proven track record for saving loans from foreclosure. Through the outreach program, borrowers can learn of improved VA mortgage options which may be particularly beneficial to veterans experiencing financial distress.

One of the most recent outreach missions for VA counselors is to contact veterans in financial distress due to high monthly mortgage payments and inform them of new and improved options for refinancing at lower rates with VA loans. Since the Veterans' Benefits Improvement Act of 2008 was signed into law in October of 2008, VA-eligible borrowers have been able to get up to 100% refinancing with VA loans.

Refinancing at 100% is available to qualified veterans whether the mortgage being replaced is a VA loan or not. The best time to take advantage of this option is before there is any delinquency. There is no doubt that 100% refinancing with VA loans could help relieve financial stress for many veterans and save many mortgages from foreclosure. A VA Streamline loan is a great way to refinance without having to requalify. As the name implies, the qualification process is streamlined. For example, a veteran's mortgage payment record must be good.

While the VA authorizes streamline refinance loans, Lenders are not required to make such loans. When they do, terms may vary from lender to lender.

Some states like Michigan, offer addition foreclosure protection for service members.

Whether it's a repayment plan, forbearance, loan modification, 100% refinancing, or a VA Streamline that ends up saving a VA loan from foreclosure, the VA outreach program is working to keep veterans in their homes.