Thousands Of Veterans Face Foreclosure And It's Not Their Fault. The VA Could Help

2026-01-10T01:03:29Z

FelicaMjx865: Created page with " Thousands of veterans deal with foreclosure and it's not their fault. The VA might help By Chris Arnold, Robert Benincasa Updated Thursday, November..."

Thousands of veterans deal with foreclosure and it's not their fault. The VA might help By Chris Arnold, Robert Benincasa Updated Thursday, November 16, 2023 • 9:53 AM EST Heard on Morning Edition Becky Queen keeps in mind opening the letter with the [https://simayyachtcharters.com foreclosure notification]. "My heart dropped," she said, "and my hands were shaking." Queen lives on a small farm in rural Oklahoma with her other half, Ray, and their two young kids. Ray is a U.S. Army veteran who was injured in Iraq. Since the 1940s, the federal government has actually assisted veterans like him buy homes through its VA loan program, run by the Department of Veterans Affairs. And now the VA has actually put this household on the brink of losing their house. "I didn't do anything incorrect," states Ray Queen. "The only thing I did was trust a business that I'm expected to rely on with my mortgage." Like countless other Americans, the [https://gestionsprint.com Queens benefited] from what's called a COVID mortgage forbearance, which allowed house owners to skip mortgage payments. It was established by Congress after the pandemic hit for people who lost earnings. But an NPR investigation has found that countless veterans who took a forbearance are now at danger of losing their homes through no fault of their own. And while the VA is working on a way to fix the issue, for lots of it could be far too late. After NPR at first published this story, a group of 4 U.S. Senators sent a letter to the VA asking it to instantly stop foreclosing on the homes of veterans and servicemembers. It's unclear if the VA will do that. For the Queens, this all begun in September of 2021, when Becky's mother passed away of COVID-19. She needed to take a prolonged leave from work and lost her job. So last year, with their cost savings decreasing, the couple states they called the company that handles their mortgage, Mr. Cooper, and were told they might skip 6 months of payments. And as soon as they returned on their feet and could start paying again, the couple states they were informed, they would not owe the missed payments in a big swelling amount. "I extremely specifically asked 'how does this work?'" says Becky Queen. "They stated we're taking all of your payments, we're bundling them, and we're putting them at the end." That is, the missed out on payments would be relocated to the back end of their loan term so they might simply start making their normal mortgage payment once again. But that's not how it worked out. In October 2022, the Department of Veterans Affairs ended the so-called Partial Claim Payment program, or PCP, that made it possible for property owners to do that. This occurred even though the mortgage market, housing supporters and veterans groups all warned the VA not to end the program, stating thousands of house owners needed to capture up on missed out on payments. Rate of interest had increased so much that lots of could not afford to refinance or return on track any other way. Ray Queen says nobody told him about any of this. "How does that happen?" Queen asked. "This is supposed to be a program that you all need to assist people in times of crisis, so you do not take their house from them." The Queens state they tried to come off their forbearance in February of this year and resume paying their mortgage. They were both working again. But they ran into hold-ups with the mortgage business. Then, in September, the couple says they were told they required to come up with more than $22,000, which they don't have, or either offer their home or get foreclosed on. Their mortgage servicing business, Mr. Cooper, said in a statement it "checked out every possible avenue to work through a service for this consumer." But it stated the VA needs better loss-mitigation options and referred NPR to a letter from advocates, industry and veteran groups advising the VA to reboot the PCP program. The VA "has truly let individuals down" "The Department of Veterans Affairs has truly let individuals down," says Kristi Kelly, a customer lawyer in Virginia who says she is speaking with a lot of other [https://peterrealestatebroker.com veterans] in the very same circumstance as Ray and Becky Queen. "The property owners participated in COVID forbearances, they were made sure guarantees, and there were certain representations that were made," states Kelly. "And the VA essentially pulled the carpet out from under everybody." For some house owners, ending the program may not suggest foreclosure, however it still indicates a monetary challenge. "Many of these individuals have 2 or 3% rate of interest loans," Kelly states. With the [https://infinityhousing.in PCP program] they might keep that interest rate. And now, she states, the only method they'll have the [https://theluxethailand.com ability] to save their home is to enter into a loan modification where the interest rate will be around today's market rate of 7.5%. "For many people, their payments will increase by $600 or $700 a month, due to the fact that the VA has decided to end the partial claim program." Many property owners can't pay for such a big increase in their [https://moydom-uz.com regular monthly] payment. According to the data firm ICE Mortgage Technology, 6,000 [https://suratvrproperties.com house owners] with VA loans who had actually COVID forbearances are currently in the foreclosure process. And 34,000 more are delinquent. Kelly states most other house owners in America - people with FHA loans, for circumstances, or loans backed by Fannie Mae and Freddie Mac - still have ways to avoid foreclosure by moving missed payments to the back of the loan term. But property owners with VA loans do not, due to the fact that the VA ended that program. So veterans are being treated even worse than most other house owners, Kelly stated. "Service members remain in a position where they're going to lose their home," she says. "And for many people, that's everything they work for - and all their wealth remains in their homes." VA has a strategy to assist, but it could be too late The Department of Veterans Affairs says it had no choice but to end the program. "We had a short-term authority for that specific program during COVID," says John Bell, executive director of the Veterans Benefits Administration's Loan Guaranty Service. "It wasn't part of our normal authority." Some in the industry believe the VA did, in reality, have the authority to extend the program. But in any case, it ended it. Now, however, the VA is taking the circumstance seriously. NPR has discovered that the VA is dealing with a brand-new program to change the old one. It will operate in a various way however to comparable effect, to save individuals from foreclosure. Bell states it's going to take 4 to five months to get it up and [https://bauerwohnen.com running]. That's too long for a number of those 6,000 VA homeowners already in the foreclosure procedure. Not to discuss the many more who are delinquent. Already, information reveals that more VA homeowners have actually been heading into foreclosure because the VA ended its PCP program. The exact same is not real for FHA loans or loans backed by Fannie Mae or . Will the firetruck get here far too late? With so lots of property owners at danger, there's growing [https://amlak-modiran.com pressure] on the VA to stop foreclosing on veterans till it gets its repair up and running. "There need to be a time out on foreclosures," says Steve Sharpe, a senior attorney at the National Consumer Law Center. "Veterans should truly be able to have an ability to access this program when it comes online because it's been so long considering that they've had something that will genuinely work. Sharpe says the VA might likewise restart the PCP program that it shut down. "They have the authority to do both," he states. Pausing foreclosures seems like a great idea to veteran Ray Queen in Oklahoma. "Let us keep paying towards our routine mortgage between now and then," he says. "Then once the VA has actually that repaired we can return and attend to the situation. That appears like the adult, fully grown thing to do, not put a household through hell." NPR repeated Ray Queen's plea to John Bell at the VA straight. Bell said the VA is "checking out all choices at this moment in time." "We owe it to our veterans to make sure that we're providing every opportunity to be able to remain in the home," Bell said. Wednesday, a group of U.S. Senators sent a letter to the VA advising them to put a hold on anymore foreclosures. "Without this pause, thousands of veterans and servicemembers could unnecessarily lose their homes," Sens. Sherrod Brown, Jon Tester, Jack Reed, and Tim Kaine, all Democrats, composed in a letter to VA Secretary Denis McDonough. "This was never the intent of Congress." Tester, of Montana, chairs the Veterans' Affairs Committee, and Brown, of Ohio, chairs the Banking Committee. They asked the VA "to implement an immediate pause on all VA loan foreclosures where [https://asolutionsgroup.com customers] are most likely to be eligible for VA's new ... program up until it is readily available and debtors can be assessed to see if they qualify." Ray and Becky Queen are hoping the VA does let individuals keep their homes until the brand-new program can provide them a way to get present on their mortgages. Because if the firetruck appears after the home has burned down, it's not going to do much excellent for the countless veterans and service members who need help now. Transcript LEILA FADEL, HOST: An NPR examination has discovered that countless U.S. military service members and veterans might lose their homes through no fault of their own. As NPR's Chris Arnold reports, the Department of Veterans Affairs is working on a fix. But it could be too late.CHRIS ARNOLD, BYLINE: Ray and Becky Queen are revealing us around their farm in Bartlesville, Okla.BECKY QUEEN: This is Cagney and Lacey, our ducks.ARNOLD: The couple lives here with their two young kids. Ray served in Iraq in the Army. Inside their house, he says that he was injured by an improvised explosive gadget, or IED.RAY QUEEN: And so you're aware, I have brain damage from my time in Iraq. So there's a lot of various things that do not work the way they're expected to any longer. And my memory is not great.ARNOLD: For years, the federal government's assisted veterans like Queen to buy homes through its VA loan program. Now the VA has put this family on the edge of losing their house.B QUEEN: This is the letter that my other half and I got yesterday specifying that they're beginning foreclosure proceedings.ARNOLD: What's taking place is that like countless other Americans, the Queens took benefit of what's called a COVID mortgage forbearance. It was set up by Congress after the pandemic hit for individuals who lost income. When Becky's mama passed away of COVID, she needed to take an extended leave from work and lost her job. In 2015, the couple says their mortgage company informed them that they could skip six months of payments while they returned on their feet and then simply start paying their mortgage again.B QUEEN: I extremely particularly asked, how does this work? And they said, we're taking all of your payments. We're bundling them, and we're putting them at the end.ARNOLD: That is, the missed payments would move to the back end of their loan term so they might resume their typical mortgage payment. But that is not how it exercised, because a year ago in October, the Department of Veterans Affairs ended the program that made it possible for homeowners to do that, even though housing supporters and the mortgage industry and veterans groups all cautioned them not to end the program due to the fact that thousands of homeowners required to capture up on missed payments. Rate of interest, too, had increased a lot that numerous could not pay for to refinance or get back on track any other way. Ray Queen says nobody told him about any of this.R QUEEN: How does that happen? This is expected to be a program that y' all need to help individuals in times of crisis so you don't take their home from them.ARNOLD: The couple states in September, they were told that they needed to come up with a big payment - upwards of $22,000, which they don't have - or offer their home or get foreclosed on.B QUEEN: My heart dropped, and, like, my hands were shaking.KRISTI KELLY: The Department of Veterans Affairs has truly let individuals down.ARNOLD: Kristi Kelly is a consumer attorney in Virginia who's hearing from a lot of veterans who remain in the same boat.KELLY: The homeowners participated in COVID forbearances. They were made sure promises, and the VA essentially pulled the carpet out from under everybody.ARNOLD: Kelly states for many other house owners in America, there are still ways to move your missed out on payments to the back of the loan term so you can avoid getting foreclosed on, however not if you have a VA loan. So she says veterans are being treated worse than most other homeowners.KELLY: Service members are going to lose their home, and for a lot of individuals, that's everything they work for and all their wealth, are in their homes.ARNOLD: For its part, the Department of Veterans Affairs states it had no option however to end the program. John Bell heads up the VA's home financing division.JOHN BELL: We had a short-term authority for that specific program during COVID.ARNOLD: Some in the market think the VA did in fact have the authority to extend the program. Now, however, NPR has learned that the VA is dealing with a new program to replace the old one, but that's still four or five months away - too wish for much of the 6,000 house owners with VA loans who remain in the foreclosure procedure. Not to mention there's 34,000 more who were delinquent. Right now there's pressure on the VA to put a time out on foreclosures while it gets that program running. John Bell states the VA is, quote, "thinking about all options."BELL: We owe it to our veterans to make sure that we're providing every opportunity to be able to stay in the home.ARNOLD: Ray and Becky Queen are hoping that the VA does put a time out on foreclosures, since if the fire truck appears after the home burns down, it's not going to do much helpful for the thousands of veterans who require aid now.Chris Arnold, NPR News.

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2026-01-10T01:03:22Z

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Thousands Of Veterans Face Foreclosure And It's Not Their Fault. The VA Could Help

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