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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+<br>Thousands of veterans deal with foreclosure and it's not their fault. The VA could assist<br>
+<br>By Chris Arnold, Robert Benincasa<br>
+<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 stated, "and my hands were shaking."<br>
+<br>Queen resides on a little farm in rural Oklahoma with her partner, Ray, and their 2 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 family on the verge of losing their house.<br>
+<br>"I didn't do anything incorrect," states Ray Queen. "The only thing I did was trust a company that I'm expected to trust with my mortgage."<br>
+<br>Like millions of other Americans, the Queens benefited from what's called a COVID mortgage forbearance, which allowed property owners to avoid mortgage payments. It was established by Congress after the [pandemic hit](https://dbo.globebb.com) for people who lost earnings.<br>
+<br>But an NPR investigation has found that thousands of veterans who took a forbearance are now at danger of losing their homes through no fault of their own. And while the VA is dealing with a way to repair the issue, for many it could be too late.<br>
+<br>After NPR initially published this story, a group of four U.S. Senators sent out a letter to the VA asking it to instantly stop foreclosing on the homes of veterans and [servicemembers](http://brickbybrickpvt-ltd.com). 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 needed to take a prolonged leave from work and lost her job.<br>
+<br>So last year, with their cost savings dwindling, the couple states they called the company that handles their mortgage, Mr. Cooper, and were told they could skip 6 months of payments. And once they got back on their feet and might begin paying once again, the couple says they were informed, they would not owe the missed payments in a big lump sum.<br>
+<br>"I very particularly 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 out on payments would be moved to the back end of their loan term so they could simply start making their typical mortgage payment again.<br>
+<br>But that's not how it exercised.<br>
+<br>In October 2022, the Department of Veterans Affairs ended the so-called [Partial Claim](https://chohanhayestate.com) Payment program, or PCP, that enabled property owners to do that. This took place although the mortgage market, housing supporters and veterans groups all cautioned the VA not to end the program, saying thousands of homeowners required to [capture](https://ykrealyussuf.com) up on missed payments. Rates of interest had actually increased a lot that many could not afford to re-finance or get back on track any other way.<br>
+<br>Ray Queen says no one informed him about any of this.<br>
+<br>"How does that occur?" Queen asked. "This is supposed to be a program that you all need to help people in times of crisis, so you do not take their house from them."<br>
+<br>The Queens say they tried to come off their forbearance in February of this year and [resume paying](https://pinkcityhomes.com) their mortgage. They were both working once again. But they ran into hold-ups with the mortgage company.<br>
+<br>Then, in September, the couple states they were told they needed to come up with more than $22,000, which they do not have, or either offer their house or get foreclosed on.<br>
+<br>Their mortgage servicing business, Mr. Cooper, stated in a statement it "checked out every possible opportunity to overcome a service for this customer." But it said the VA requires much better loss-mitigation options and referred NPR to a letter from advocates, market and veteran groups advising the VA to reboot the PCP program.<br>
+<br>The VA "has actually let individuals down"<br>
+<br>"The Department of Veterans Affairs has really let people down," says Kristi Kelly, a consumer lawyer in Virginia who says she is speaking with a lot of other veterans in the very same situation as Ray and Becky Queen.<br>
+<br>"The homeowners entered into COVID forbearances, they were made sure pledges, and there were specific representations that were made," states Kelly. "And the VA essentially pulled the rug out from under everybody."<br>
+<br>For some homeowners, ending the program might not mean foreclosure, however it still implies a financial difficulty.<br>
+<br>"Many of these people have 2 or 3% rates of interest loans," Kelly says. With the PCP program they could keep that rates of interest. Now, she says, the only method they'll have the ability to save their home is to participate in a loan adjustment 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 actually chosen to end the partial claim program."<br>
+<br>Many homeowners can't manage such a huge boost in their [month-to-month payment](https://www.vitalproperties.co.za).<br>
+<br>According to the data company ICE Mortgage Technology, 6,000 homeowners with VA loans who had COVID forbearances are currently in the foreclosure procedure. And 34,000 more are [overdue](https://navyareality.com).<br>
+<br>Kelly states most other property owners in America - people with FHA loans, for instance, or loans backed by Fannie Mae and Freddie Mac - still have methods to [prevent foreclosure](https://fourfrontestates.com) by moving missed payments to the back of the loan term.<br>
+<br>But house owners with VA loans do not, because the VA ended that program. So veterans are being treated worse than a lot of 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 people, that's whatever they work for - and all their wealth remains in their homes."<br>
+<br>VA has a strategy to help, however it could be far too late<br>
+<br>The Department of Veterans Affairs says it had no option however to end the program.<br>
+<br>"We had a short-term authority for that specific program throughout COVID," says John Bell, executive director of the Veterans Benefits Administration's Loan Guaranty Service. "It wasn't part of our regular authority."<br>
+<br>Some in the industry think the VA did, in truth, have the authority to extend the program. But in either case, it ended it.<br>
+<br>Now, though, the VA is taking the scenario seriously.<br>
+<br>NPR has actually discovered that the VA is dealing with a new [program](https://topapartmentsre.com) to change the old one. It will work in a various way however to similar impact, to conserve people from foreclosure. Bell states it's going to take 4 to five months to get it up and running.<br>
+<br>That's too wish for many of those 6,000 VA property owners already in the foreclosure procedure. Not to mention the lots of more who are overdue.<br>
+<br>Already, information shows that more VA  have been heading into foreclosure considering 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 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](https://suvenduhomes.com).<br>
+<br>"There need to be a time out on foreclosures," states Steve Sharpe, a senior lawyer at the National Consumer [Law Center](https://morganiteproperties.com). "Veterans should actually have the ability to have an ability to access 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 states the VA might likewise restart the PCP program that it closed down. "They have the [authority](https://pinnaclepropertythailand.com) to do both," he states.<br>
+<br>Pausing foreclosures seems like a great concept to veteran Ray Queen in Oklahoma.<br>
+<br>"Let us keep paying towards our routine mortgage between once in a while," he says. "Then when the VA has actually that fixed we can come back and deal with the situation. That appears like the adult, fully grown thing to do, not put a family through hell."<br>
+<br>NPR repeated Ray Queen's plea to John Bell at the VA straight. Bell stated 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 every opportunity 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 prompting them to put a hang on any more foreclosures.<br>
+<br>"Without this pause, [countless veterans](https://gornitsahotel.ru) and servicemembers might 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 ever 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 instant pause on all VA loan foreclosures where borrowers are most likely to be eligible for VA's brand-new ... program till it is available and borrowers can be evaluated to see if they certify."<br>
+<br>Ray and Becky Queen are hoping the VA does let people keep their homes up until the new program can provide them a way to get current on their mortgages. Because if the firetruck shows up after your home has actually burned down, it's not going to do much excellent for the thousands of veterans and service members who require assistance now.<br>
+<br>Transcript<br>
+<br>LEILA FADEL, HOST: An NPR investigation has actually found 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 dealing with a repair. But it might 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 home, he says that he was wounded by an improvised explosive device, or IED.RAY QUEEN: And so you know, I have brain damage from my time in Iraq. So there's a lot 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 helped veterans like Queen to buy homes through its VA loan program. Now the VA has actually put this household on the edge of losing their house.B QUEEN: This is the letter that my partner and I received yesterday mentioning that they're starting foreclosure proceedings.ARNOLD: What's occurring is that like millions of other Americans, the Queens made the most of what's called a COVID mortgage forbearance. It was set up by Congress after the pandemic hit for individuals who lost earnings. When Becky's mother died of COVID, she needed to take a prolonged leave from work and lost her task. Last year, the couple states their mortgage company told them that they could avoid six months of payments while they returned on their feet and then just start paying their mortgage again.B QUEEN: I very particularly asked, how does this work? And they stated, 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 could resume their normal mortgage payment. But that is not how it exercised, due to the fact that a year ago in October, the Department of Veterans Affairs ended the program that made it possible for homeowners to do that, although housing supporters and the mortgage industry and veterans groups all warned them not to end the program due to the fact that countless house owners needed to catch up on missed payments. Rate of interest, too, had increased a lot that numerous couldn't manage to re-finance or return on track any other way. Ray Queen states no one told him about any of this.R QUEEN: How does that happen? This is supposed to be a program that y' all need to help people in times of crisis so you do not take their home 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 sell 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 actually let people down.ARNOLD: Kristi Kelly is a customer attorney in Virginia who's hearing from a great deal of veterans who are in the very same boat.KELLY: The homeowners got in into COVID forbearances. They were made sure guarantees, and the VA basically pulled the rug out from under everybody.ARNOLD: Kelly says for most other property 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, but not if you have a VA loan. So she states veterans are being treated worse than most other homeowners.KELLY: Service members are going to lose their home, and for many people, that's everything they work for and all their wealth, are in their homes.ARNOLD: For its part, the Department of Veterans Affairs says it had no option however to end the program. John Bell heads up the VA's home loaning division.JOHN BELL: We had a short-term authority for that particular program throughout COVID.ARNOLD: Some in the industry believe the VA did really have the authority to extend the program. Now, though, NPR has discovered that the VA is working on a new program to replace the old one, but that's still 4 or five months away - too long for many of the 6,000 property owners with VA loans who are in the foreclosure process. 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 says the VA is, quote, "thinking about all alternatives."BELL: We owe it to our veterans to ensure that we're offering 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 truck reveals up after your house burns down, it's not going to do much great for the countless veterans who need assistance now.Chris Arnold, NPR News.<br>