You may qualify on two fronts for both a financial hardship and a medical hardship. If you are not behind on your mortgage, you have almost every option available including the possibility of the HARP or HAP program. Call your Primary lender and ask if your mortgage qualifies for either of these remedies. If your lender says no, ask if they have an "in-house" program that might work. If you are already behind, ask about HAMP or an "in-house" HAMP.
All of these options may work if you want to keep your current home. If you don't you may be looking at the short sale option. Please make sure any realtor you consider is CDPE certified and has had several successful short sale closings. It is also to your benefit if the agent you select is local and familiar with specifics of VA loans/short sales.
Best of luck and let me know if I can help you or if you have anymore questions.
Lisa LeQuire, realtor #1398648
CDPE, Women in Distressed Properties (charter member)