The VA offers several refinancing options, including Housing Assistance for the severely disabled.
https://choose.va.gov/housing-assistance/mortgage-refinancing 🔗The problem is that the VA is not proactive in getting help where it is needed. This is not negligence; they are simply unaware that a veteran is in trouble. They rely on the mortgage company to identify when a loan is behind in payment, and then the lender is to contact the veteran to inform them.
The problem is that everything is computerized. Automated statements, payment postings, and even late notice mailings. It is not until the payments are 90 days or more behind that someone actually looks at them. Even then, the loan is often just transferred to a Collections department or an outside collection agency. By then, it may be too little too late.
Being behind in mortgage payments affects your credit score, which in turn affects your ability to refinance. It is up to the veteran to reach out for help, but many do not even know that help is available.