November 19th 2023.
Veterans across the country are facing the risk of foreclosure due to a program put in place by the Department of Veterans Affairs. Thousands of veterans took advantage of a COVID forbearance program, which paused or reduced their mortgage payments for a year but stipulated that they would have to catch up on the missed or reduced payments once the period was over.
The VA had initially set up a way for veterans to make affordable payments, but inexplicably ended that portion of the program in October 2022. This left veterans at risk of losing their homes, leaving them no alternative but to seek foreclosure.
Fortunately, the VA has taken notice and has created a new program to help fix their oversight. The program will take up to 4-5 months to get off the ground, which is not enough time for veterans currently in the middle of the foreclosure process.
In response, Democratic Senators Tim Kaine, Sherrod Brown, Jon Tester, and Jack Reed have sent a letter to the VA, urging them to put a stop to the foreclosures immediately. Data from ICE Mortgage Technology shows that 6,000 veterans are currently in the process of having their homes foreclosed on, and 34,000 are currently delinquent on their payments.
In response, VA Press Secretary Terrance Hayes has called upon mortgage companies to pause foreclosures on loans the VA holds until at least May 31, 2024. This will give the VA the time to work with veterans experiencing financial hardship to adjust their loans and monthly payments in order to keep their homes.
With the VA taking action, veterans will be given the chance to keep their homes and not fall victim to this unfortunate circumstance.
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