Add Countless Veterans Face Foreclosure and it's not their Fault. the vA could Help

Countless-Veterans-Face-Foreclosure-and-it%27s-not-their-Fault.-the-vA-could-Help.md

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+[caprover.com](https://caprover.com/)<br>Thousands of veterans deal with foreclosure and it's not their fault. The VA might help<br>
+<br>By Chris Arnold, Robert Benincasa<br>
+<br>Updated Thursday, November 16, 2023 • 9:53 AM EST<br>
+<br>Heard on  Edition<br>
+<br>Becky Queen keeps in mind opening the letter with the foreclosure notification.<br>
+<br>"My heart dropped," she said, "and my hands were shaking."<br>
+<br>Queen resides on a little farm in rural Oklahoma with her partner, 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 purchase homes through its VA loan program, run by the Department of Veterans Affairs.<br>
+<br>But now the VA has actually put this household on the brink of losing their house.<br>
+<br>"I didn't do anything incorrect," says Ray Queen. "The only thing I did was trust a company that I'm supposed to trust with my mortgage."<br>
+<br>Like countless other Americans, the Queens made the most of what's called a COVID mortgage forbearance, which enabled house owners to skip mortgage payments. It was set up by Congress after the pandemic hit for people who lost income.<br>
+<br>But an NPR investigation has actually found that [countless](https://cabana.villas) veterans who took a forbearance are now at risk of losing their homes through no fault of their own. And while the VA is dealing with a method to repair the issue, for many it might be far too late.<br>
+<br>After NPR initially published this story, a group of four U.S. Senators sent a letter to the VA asking it to immediately stop foreclosing on the homes of veterans and servicemembers. It's uncertain if the VA will do that.<br>
+<br>For the Queens, this all begun in September of 2021, when Becky's mom passed away of COVID-19. She had to take an extended leave from work and lost her task.<br>
+<br>So last year, with their savings decreasing, the couple says they called the company that handles their mortgage, Mr. Cooper, and were informed they could skip 6 months of [payments](https://ivoryafrica.com). And when they got back on their feet and could begin paying again, the couple states they were told, they wouldn't owe the missed payments in a huge lump amount.<br>
+<br>"I really 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."<br>
+<br>That is, the missed out on [payments](https://leonisinmobiliaria.com) would be relocated to the back end of their loan term so they could simply start making their regular mortgage payment once again.<br>
+<br>But that's not how it worked out.<br>
+<br>In October 2022, the Department of Veterans Affairs ended the so-called Partial Claim Payment program, or PCP, that allowed property owners to do that. This took place although the mortgage industry, housing supporters and veterans groups all cautioned the VA not to end the program, saying countless house owners needed to capture up on missed payments. Rates of interest had actually risen a lot that many could not afford to re-finance or get back on track any other method.<br>
+<br>Ray Queen states nobody told him about any of this.<br>
+<br>"How does that happen?" Queen asked. "This is expected to be a program that you all need to assist people in times of crisis, so you do not take their home from them."<br>
+<br>The Queens say they attempted to come off their forbearance in February of this year and resume paying their mortgage. They were both working once again. But they ran into delays with the mortgage business.<br>
+<br>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 sell their house or get foreclosed on.<br>
+<br>Their [mortgage servicing](https://www.varni.ae) company, Mr. Cooper, stated in a declaration it "explored every possible avenue to resolve an option for this customer." But it said the VA needs much better loss-mitigation alternatives and referred NPR to a letter from supporters, market and veteran groups [prompting](https://smalltownstorefronts.com) the VA to reboot the PCP program.<br>
+<br>The VA "has really let individuals down"<br>
+<br>"The Department of Veterans Affairs has truly let individuals down," states Kristi Kelly, a customer legal representative in Virginia who states she is speaking with a lot of other veterans in the exact same scenario as Ray and Becky Queen.<br>
+<br>"The house owners participated in COVID forbearances, they were made particular guarantees, and there were certain representations that were made," says Kelly. "And the VA basically pulled the rug out from under everyone."<br>
+<br>For some house owners, ending the program may not imply foreclosure, but it still means a monetary challenge.<br>
+<br>"Much of these individuals have 2 or 3% rate of interest loans," Kelly says. With the PCP program they might keep that interest rate. Now, she states, the only way they'll be able to conserve their home is to enter into a loan modification where the rate of interest will be around today's market rate of 7.5%.<br>
+<br>"For many people, their payments will increase by $600 or $700 a month, because the VA has chosen to end the partial claim program."<br>
+<br>Many property owners can't pay for such a substantial boost in their monthly payment.<br>
+<br>According to the data [company ICE](https://realestate.kctech.com.np) [Mortgage](https://riserealbali.com) Technology, 6,000 property owners with VA loans who had COVID forbearances are currently in the foreclosure procedure. And 34,000 more are delinquent.<br>
+<br>Kelly states most other property owners in America - individuals with FHA loans, for example, or loans backed by Fannie Mae and Freddie Mac - still have ways to avoid foreclosure by moving missed out on payments to the back of the loan term.<br>
+<br>But house owners with VA loans don't, due to the fact that the VA ended that program. So veterans are being [treated](https://asmauburn.com) even worse than many other homeowners, Kelly said.<br>
+<br>"Service members remain in a position where they're going to lose their home," she states. "And for many people, that's everything they work for - and all their wealth remains in their homes."<br>
+<br>VA has a plan to assist, but it might be too late<br>
+<br>The Department of Veterans Affairs says it had no choice but to end the [program](https://bomja.ir).<br>
+<br>"We had a short-term authority for that particular program throughout COVID," states John Bell, executive director of the Veterans Benefits Administration's Loan Guaranty Service. "It wasn't part of our typical authority."<br>
+<br>Some in the industry believe the VA did, in truth, have the authority to extend the program. But either way, it ended it.<br>
+<br>Now, though, the VA is taking the situation seriously.<br>
+<br>NPR has actually found out that the VA is dealing with a brand-new program to replace the old one. It will operate in a different way however to comparable effect, to [save people](https://www.grad-group.com) from foreclosure. Bell says it's going to take four to five months to get it up and running.<br>
+<br>That's too wish for a lot of those 6,000 VA homeowners already in the [foreclosure procedure](https://homematch.co.za). Not to mention the numerous more who are delinquent.<br>
+<br>Already, data shows that more VA property owners have actually been heading into foreclosure given that the VA ended its PCP program. The same is not true for FHA loans or loans backed by Fannie Mae or Freddie Mac.<br>
+<br>Will the firetruck get here too late?<br>
+<br>With a lot of property owners at risk, there's growing pressure on the VA to stop foreclosing on veterans until it gets its repair up and running.<br>
+<br>"There should be a time out on foreclosures," says Steve Sharpe, a senior lawyer at the National Consumer Law Center. "Veterans must really have the ability to have an ability to gain access to this program when it comes online because it's been so long considering that they have actually had something that will truly work.<br>
+<br>Sharpe says the VA could also restart the PCP program that it closed down. "They have the authority to do both," he says.<br>
+<br>Pausing foreclosures seems like a good concept to veteran Ray Queen in Oklahoma.<br>
+<br>"Let us keep paying towards our regular mortgage between from time to time," he says. "Then when the VA has actually that [repaired](https://scoutmoney.co) we can come back and attend to the situation. That appears like the adult, mature thing to do, not put a family through hell."<br>
+<br>NPR duplicated Ray Queen's plea to John Bell at the VA directly. Bell said the VA is "exploring all options at this moment in time."<br>
+<br>"We owe it to our veterans to make certain that we're offering them every chance to be able to remain in the home," Bell stated.<br>
+<br>Wednesday, a group of U.S. Senators sent out a letter to the VA advising them to put a hang on anymore foreclosures.<br>
+<br>"Without this pause, countless veterans and servicemembers could needlessly 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."<br>
+<br>Tester, of Montana, chairs the Veterans' Affairs Committee, and Brown, of Ohio, chairs the Banking Committee. They asked the VA "to carry out an immediate time out on all VA loan foreclosures where borrowers are likely to be qualified for VA's new ... program until it is readily available and debtors can be examined to see if they certify."<br>
+<br>Ray and Becky Queen are hoping the VA does let individuals keep their homes until the brand-new program can offer them a method to get present on their mortgages. Because if the firetruck shows up after your home has actually burned down, it's not going to do much helpful for the thousands of veterans and service members who need help now.<br>
+<br>Transcript<br>
+<br>LEILA FADEL, HOST: An NPR investigation has discovered that countless U.S. military service members and veterans could lose their homes through no fault of their own. As NPR's Chris Arnold reports, the Department of Veterans Affairs is working on a repair. But it could be too late.CHRIS ARNOLD, BYLINE: Ray and Becky Queen are showing 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 home, he states that he was wounded by an improvised explosive gadget, or IED.RAY QUEEN: And so you're conscious, I have mental retardation from my time in Iraq. So there's a great deal of various things that don't work the way they're expected to anymore. 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. But now the VA has actually put this family on the verge of losing their house.B QUEEN: This is the letter that my spouse and I received the other day stating that they're beginning foreclosure proceedings.ARNOLD: What's occurring is that like millions of other Americans, the Queens benefited from what's called a COVID mortgage forbearance. It was established by Congress after the pandemic hit for people who lost earnings. When Becky's mama passed away of COVID, she had to take a prolonged leave from work and lost her task. Last year, the couple says their mortgage business told them that they could avoid 6 months of payments while they got back on their feet and then simply start paying their mortgage again.B QUEEN: I really 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 out on payments would move to the back end of their loan term so they might resume their normal mortgage payment. But that is not how it worked out, due to the fact that a year ago in October, the Department of Veterans Affairs ended the program that made it possible for house owners to do that, even though housing supporters and the mortgage market and veterans groups all warned them not to end the program because thousands of house owners required to capture up on missed payments. Rates of interest, too, had actually increased a lot that numerous could not manage to refinance or get back on track any other way. Ray Queen says no one informed him about any of this.R QUEEN: How does that take place? This is expected to be a program that y' all need to assist people in times of crisis so you don't take their house from them.ARNOLD: The couple says in September, they were told that they required to come up with a substantial payment - upwards of $22,000, which they don't have - or offer their house 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 customer attorney in Virginia who's hearing from a great deal of veterans who are in the exact same boat.KELLY: The property owners participated in COVID forbearances. They were made particular pledges, and the VA essentially pulled the rug out from under everybody.ARNOLD: Kelly states for a lot of other property owners in America, there are still methods to move your missed out on payments to the back of the loan term so you can prevent getting foreclosed on, however not if you have a VA loan. So she states veterans are being treated worse than many other homeowners.KELLY: Service members are going to lose their home, and for the majority of people, that's whatever they work for and all their wealth, remain in their homes.ARNOLD: For its part, the Department of Veterans Affairs says it had no option but to end the program. John Bell directs the VA's home loaning division.JOHN BELL: We had a short-term authority for that specific program during COVID.ARNOLD: Some in the industry think the VA did in fact have the authority to extend the program. Now, though, NPR has found out that the VA is dealing with a brand-new program to change the old one, however that's still 4 or five months away - too wish for numerous of the 6,000 house owners with VA loans who are in the foreclosure procedure. Not to point out there's 34,000 more who were delinquent. Today 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 them every opportunity to be able to remain in the home.ARNOLD: Ray and Becky Queen are hoping that the VA does put a pause on foreclosures, due to the fact that if the fire engine appears after your home burns down, it's not going to do much great for the countless veterans who require assistance now.Chris Arnold, NPR News.<br>