Add Thousands of Veterans Face Foreclosure and it's not their Fault. the vA Might Help

Thousands-of-Veterans-Face-Foreclosure-and-it%27s-not-their-Fault.-the-vA-Might-Help.md

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+<br>Countless veterans face foreclosure and it's not their fault. The VA could help<br>
+<br>By Chris Arnold, Robert Benincasa<br>[crunchbase.com](https://www.crunchbase.com/organization/zillow)
+<br>Updated Thursday, November 16, 2023 • 9:53 AM EST<br>
+<br>Heard on Morning Edition<br>
+<br>Becky Queen keeps in mind opening the letter with the foreclosure notice.<br>
+<br>"My heart dropped," she said, "and my hands were shaking."<br>
+<br>Queen lives on a small farm in rural Oklahoma with her spouse, Ray, and their 2 young kids. Ray is a U.S. Army veteran who was wounded in Iraq. Since the 1940s, the federal government has helped veterans like him purchase homes through its VA loan program, run by the [Department](https://dentalbrokerflorida.com) of [Veterans Affairs](https://propertybaajaar.com).<br>
+<br>Today the VA has actually put this household on the edge of losing their home.<br>
+<br>"I didn't do anything wrong," states Ray Queen. "The only thing I did was trust a business that I'm supposed to trust with my mortgage."<br>
+<br>Like millions of other Americans, the Queens benefited from what's called a COVID mortgage forbearance, which enabled homeowners to skip mortgage payments. It was established by Congress after the pandemic hit for individuals who lost earnings.<br>
+<br>But an NPR examination has actually found that thousands of veterans who took a forbearance are now at threat of losing their homes through no fault of their own. And while the VA is dealing with a way to fix the problem, for numerous it could be too late.<br>
+<br>After NPR at first published this story, a group of four U.S. Senators sent out a letter to the VA asking it to right away 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 started in September of 2021, when Becky's mother died of COVID-19. She had to take an extended leave from work and lost her job.<br>
+<br>So in 2015, with their savings decreasing, the couple states they called the business that handles their mortgage, Mr. Cooper, and were informed they might avoid 6 months of payments. And once they got back on their feet and might begin paying once again, the couple states they were told, they would not owe the missed out on payments in a huge swelling sum.<br>
+<br>"I really specifically asked 'how does this work?'" states 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 payments would be moved to the back end of their loan term so they might just start making their typical 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 occurred despite the fact that the mortgage industry, housing advocates and veterans groups all alerted the VA not to end the program, saying countless house owners required to capture up on missed out on payments. Interest rates had increased a lot that [numerous](https://tbilproperty.com) could not pay for to re-finance or get back on track any other method.<br>
+<br>[Ray Queen](https://fashionweekvenues.com) says nobody told him about any of this.<br>
+<br>"How does that happen?" Queen asked. "This is supposed to be a program that you all have to help individuals in times of crisis, so you do not take their house from them."<br>
+<br>The Queens state they attempted to come off their forbearance in February of this year and resume paying their mortgage. They were both working again. But they faced hold-ups with the [mortgage company](https://estatedynamicltd.com).<br>
+<br>Then, in September, the couple says they were informed they required to come up with more than $22,000, which they do not have, or either sell their home or get foreclosed on.<br>
+<br>Their mortgage servicing business, Mr. Cooper, stated in a statement it "explored every possible opportunity to overcome a solution for this consumer." But it said the VA requires better loss-mitigation choices and referred NPR to a letter from supporters, market and veteran groups prompting the VA to restart the PCP program.<br>
+<br>The VA "has truly let individuals down"<br>
+<br>"The Department of Veterans Affairs has really let people down," says Kristi Kelly, a consumer legal representative in Virginia who states she is speaking with a lot of other veterans in the very same situation as Ray and Becky Queen.<br>
+<br>"The property owners participated in COVID forbearances, they were ensured pledges, and there were particular representations that were made," says Kelly. "And the VA essentially pulled the rug out from under everyone."<br>
+<br>For some house owners, ending the program may not mean foreclosure, but it still implies a financial challenge.<br>
+<br>"A number of these people have 2 or 3% rates of interest loans," Kelly states. With the PCP program they could keep that rate of interest. Now, she states, the only way they'll be able to conserve their home is to enter into a loan modification where the interest rate will be around today's market rate of 7.5%.<br>
+<br>"For the majority of people, their payments will increase by $600 or $700 a month, because the VA has decided to end the partial claim program."<br>
+<br>Many homeowners can't pay for such a substantial increase in their monthly payment.<br>
+<br>According to the data firm ICE Mortgage Technology, 6,000 homeowners with VA loans who had actually COVID forbearances are presently in the foreclosure procedure. And 34,000 more are overdue.<br>
+<br>Kelly says most other homeowners in America - individuals with FHA loans, for instance, or loans backed by Fannie Mae and Freddie Mac - still have methods to prevent foreclosure by moving missed out on payments to the back of the loan term.<br>
+<br>But [property](https://restosales.net) owners with VA loans don't, because the VA ended that program. So veterans are being [treated](https://rsw-haus.de) even worse than most other property owners, Kelly said.<br>
+<br>"Service members are in a position where they're going to lose their home," she says. "And for the majority of individuals, that's everything they work for - and all their wealth remains in their homes."<br>
+<br>VA has a strategy to assist, but it could be too late<br>
+<br>The  of Veterans Affairs states it had no choice but to end the program.<br>
+<br>"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 typical authority."<br>
+<br>Some in the industry think 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 [circumstance](https://fortressrealtycr.com) seriously.<br>
+<br>NPR has found out that the VA is dealing with a brand-new program to change the old one. It will operate in a various way however to similar result, to conserve people from foreclosure. Bell states it's going to take four to 5 months to get it up and [running](https://hvm-properties.com).<br>
+<br>That's too wish for a lot of those 6,000 VA house owners currently in the foreclosure procedure. Not to point out the many more who are [overdue](http://dowlingproperties.com).<br>
+<br>Already, data shows that more VA house owners have actually been heading into foreclosure given that the VA ended its PCP program. The very same is not real for FHA loans or loans backed by Fannie Mae or Freddie Mac.<br>
+<br>Will the firetruck arrive far too late?<br>
+<br>With many homeowners at risk, there's growing pressure on the VA to stop foreclosing on veterans until it gets its fix up and [running](https://www.eastpointeny.com).<br>
+<br>"There should be a time out on foreclosures," states Steve Sharpe, a senior lawyer at the National Consumer Law Center. "Veterans ought to actually have the ability to have a capability to gain access to this program when it comes online due to the fact that it's been so long since they have actually had something that will truly work.<br>
+<br>Sharpe says the VA could likewise reboot the PCP program that it closed down. "They have the authority to do both," he says.<br>
+<br>Pausing foreclosures sounds like a great concept to veteran Ray Queen in Oklahoma.<br>
+<br>"Let us keep paying towards our regular mortgage in between from time to time," he states. "Then when the VA has that repaired we can return and attend to the circumstance. That appears like the adult, fully grown thing to do, not put a household through hell."<br>
+<br>NPR repeated Ray Queen's plea to John Bell at the VA directly. Bell said the VA is "checking out all alternatives at this point in time."<br>
+<br>"We owe it to our veterans to make sure that we're providing them every chance to be able to remain in the home," Bell said.<br>
+<br>Wednesday, a group of U.S. Senators sent out a letter to the VA urging them to put a hold on anymore foreclosures.<br>
+<br>"Without this time out, countless 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."<br>
+<br>Tester, of Montana, chairs the Veterans' Affairs Committee, and Brown, of Ohio, chairs the Banking Committee. They asked the VA "to implement an immediate time out on all VA loan foreclosures where debtors are most likely to be eligible for VA's brand-new ... program till it is offered and debtors can be evaluated to see if they qualify."<br>
+<br>Ray and Becky Queen are hoping the VA does let individuals keep their homes until the brand-new program can provide them a method to get current on their mortgages. Because if the firetruck appears after your house has actually burned down, it's not going to do much great for the countless veterans and service members who require assistance now.<br>
+<br>Transcript<br>
+<br>LEILA FADEL, HOST: An NPR examination has discovered that thousands of 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 repair. But it might 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 2 young kids. Ray served in Iraq in the Army. Inside their house, he says that he was wounded by an improvised explosive gadget, or IED.RAY QUEEN: And so you know, I have mental retardation from my time in Iraq. So there's a lot of different things that don't work the method they're supposed to anymore. And my memory is not great.ARNOLD: For years, the federal government's helped veterans like Queen to purchase homes through its VA loan program. And now the VA has actually put this family on the verge of losing their house.B QUEEN: This is the letter that my hubby and I received yesterday stating that they're starting foreclosure proceedings.ARNOLD: What's taking place is that like countless other Americans, the Queens benefited from what's called a COVID mortgage forbearance. It was set up by Congress after the pandemic hit for people who lost income. When Becky's mommy passed away of COVID, she had to take an extended leave from work and lost her job. In 2015, the couple says their mortgage business informed them that they could skip six months of payments while they got back on their feet and then simply begin paying their mortgage again.B QUEEN: I very specifically 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 transfer to the back end of their loan term so they could resume their typical mortgage payment. But that is not how it exercised, since a year ago in October, the Department of Veterans Affairs ended the program that allowed property owners to do that, despite the fact that housing supporters and the mortgage market and veterans groups all alerted them not to end the program since countless property owners required to capture up on missed out on payments. Interest rates, too, had risen so much that lots of couldn't manage to re-finance or get back on track any other method. Ray Queen says nobody informed him about any of this.R QUEEN: How does that happen? 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 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 sell 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 people down.ARNOLD: Kristi Kelly is a customer lawyer 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 ensured promises, and the VA essentially pulled the rug out from under everybody.ARNOLD: Kelly says for the majority 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 avoid getting foreclosed on, but not if you have a VA loan. So she states veterans are being dealt with even worse than most other homeowners.KELLY: Service members are going to lose their home, and for most people, that's whatever 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 but to end the program. John Bell heads up the VA's home loaning division.JOHN BELL: We had a short-term authority for that specific program throughout COVID.ARNOLD: Some in the market believe the VA did actually have the authority to extend the program. Now, though, NPR has found out that the VA is dealing with a new program to change the old one, however that's still four or 5 months away - too wish for numerous of the 6,000 homeowners with VA loans who remain in the foreclosure process. Not to discuss there's 34,000 more who were overdue. Today there's pressure on the VA to put a pause on foreclosures while it gets that program running. John Bell states the VA is, quote, "considering all alternatives."BELL: We owe it to our veterans to ensure that we're providing them every chance to be able to remain in the home.ARNOLD: Ray and Becky Queen are hoping that the VA does put a pause on foreclosures, since if the fire truck reveals up after the home burns down, it's not going to do much great for the countless veterans who require help now.Chris Arnold, NPR News.<br>