You can ask the Judge for extra time before the sale. They ususally agree to about 4 months. If you want to keep the property you probably have valid defenses that will prevent the lender from getting a final judgment anytime soon, but you need an attoreny to do it.
I don't think the fact your loan originated through the VA has any impact on the foreclosure procedings. If you have credit card debt it is easyer to negotiate that than a meaningful loan modification at least in the short term. If you want to stay in the house then get a good foreclosure attorney to fight it. You can buy yourself time to see what the gov't is going to do in terms of real assistance for this crisis. Once you are out of the house, its gone.
The lender who is seeking the foreclosure wants clear title after the foreclosure is granted against the homeowner. So they sue eveyone who has any interest in the property. When the foreclosure is entered you may have to vacate the premises unless the lender or whoever buys the proerty argees that you can continue renting.
What you have is the potential for three viloations. Jane is guilty of running the read light and if John was driving he is guilty of driving with a suspended drivers licence and leaving the scene of an accident. If John was not driving then he is not guilty of anything.