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

Lesli Secombe 2025-06-15 19:47:59 +08:00
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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>[logbuch-netzpolitik.de](https://logbuch-netzpolitik.de/lnp458-shedhallenfittinge)
<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 notification.<br>
<br>"My heart dropped," she stated, "and my hands were shaking."<br>
<br>Queen survives 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 wounded in Iraq. Since the 1940s, the federal government has 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 edge 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 supposed to rely on with my mortgage."<br>
<br>Like millions of other Americans, the Queens took advantage of what's called a COVID mortgage forbearance, which allowed property owners to avoid mortgage payments. It was set up by Congress after the pandemic hit for individuals who lost earnings.<br>
<br>But an NPR investigation has discovered that countless 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 way to repair the problem, for [numerous](https://homes.lc) it could be far too late.<br>
<br>After NPR initially 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 uncertain if the VA will do that.<br>
<br>For the Queens, this all started 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 in 2015, with their cost savings decreasing, the couple says they called the company that handles their mortgage, Mr. Cooper, and were informed they might skip 6 months of [payments](https://patriciogarciapropiedades.com). And once they got back on their feet and could start paying once again, the couple says they were informed, they wouldn't owe the missed out on payments in a huge lump sum.<br>
<br>"I extremely specifically asked 'how does this work?'" states Becky Queen. "They said 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 transferred to the back end of their loan term so they could simply begin making their regular mortgage payment 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 made it possible for homeowners to do that. This happened even though the mortgage industry, housing supporters and veterans groups all warned the VA not to end the program, stating countless homeowners required to capture up on missed payments. Rate of interest had risen a lot that lots of could not manage to re-finance or get back on track any other method.<br>
<br>Ray Queen states no one informed him about any of this.<br>
<br>"How does that happen?" Queen asked. "This is supposed to be a program that you all need to assist individuals in times of crisis, so you don't take their house from them."<br>
<br>The Queens state they tried to come off their forbearance in February of this year and resume paying their mortgage. They were both working once again. But they encountered delays with the mortgage [company](https://primeestatemm.com).<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 sell their home or get [foreclosed](https://oferte.cazarecostinesti.ro) on.<br>
<br>Their [mortgage servicing](https://www.propbuddy.my) company, Mr. Cooper, said in a [statement](https://ladygracebandb.com) it "checked out every possible opportunity to resolve an option for this client." But it stated the VA needs much better loss-mitigation options and referred NPR to a letter from advocates, market and veteran groups advising the VA to restart the PCP program.<br>
<br>The VA "has actually let individuals down"<br>
<br>"The Department of Veterans Affairs has actually let individuals down," says Kristi Kelly, a consumer attorney in Virginia who states she is hearing from a lot of other veterans in the same situation as Ray and Becky Queen.<br>
<br>"The homeowners got in into COVID forbearances, they were ensured pledges, and there were specific representations that were made," states Kelly. "And the VA essentially pulled the carpet out from under everyone."<br>
<br>For some property owners, ending the program might not suggest foreclosure, however it still indicates a monetary hardship.<br>
<br>"A lot of these individuals have 2 or 3% rate of interest loans," Kelly says. With the PCP program they might keep that rates of interest. And now, she states, the only way they'll be able to save their home is to participate in a [loan adjustment](https://realtyonegroupsurf.com) where the rates of interest 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, due to the fact that the VA has chosen to end the partial claim program."<br>
<br>Many [house owners](https://realtyonegroupsurf.com) can't afford such a big boost in their month-to-month payment.<br>
<br>According to the data company ICE Mortgage Technology, 6,000 house owners with VA loans who had actually COVID forbearances are presently in the foreclosure process. And 34,000 more are delinquent.<br>
<br>Kelly states most other house owners in America - individuals with FHA loans, for circumstances, or loans backed by [Fannie Mae](https://hauntley.com) and Freddie Mac - still have methods to avoid foreclosure by moving missed out on payments to the back of the loan term.<br>
<br>But property owners with VA loans don't, due to the fact that the VA ended that program. So veterans are being treated worse than the [majority](https://luxuryproperties.in) of other house owners, Kelly stated.<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 strategy to help, but it might be far too late<br>
<br>The Department 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 fact, have the to extend the program. But in either case, it ended it.<br>
<br>Now, however, the VA is taking the circumstance seriously.<br>
<br>NPR has discovered that the VA is dealing with a brand-new program to change the old one. It will operate in a different way however to similar result, to save individuals from foreclosure. Bell says it's going to take 4 to 5 months to get it up and running.<br>
<br>That's too wish for many of those 6,000 VA homeowners already in the [foreclosure procedure](https://www.eastpointeny.com). Not to point out the numerous more who are delinquent.<br>
<br>Already, information shows that more VA house owners have been heading into foreclosure considering that the VA ended its PCP program. The exact same is not real for FHA loans or loans backed by Fannie Mae or Freddie Mac.<br>
<br>Will the [firetruck arrive](https://shofle.com) far too late?<br>
<br>With so numerous property owners at threat, there's growing pressure on the VA to stop foreclosing on veterans till it gets its spruce up and running.<br>
<br>"There ought to be a time out on foreclosures," says Steve Sharpe, a senior attorney at the National Consumer Law Center. "Veterans must really be able to have a capability to access this program when it comes online due to the fact that it's been so long because they've had something that will really work.<br>
<br>Sharpe states the VA might likewise restart the PCP program that it shut 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 routine mortgage in between once in a while," he states. "Then once the VA has that fixed we can return and resolve the scenario. That looks like the adult, fully grown thing to do, not put a household through hell."<br>
<br>NPR duplicated Ray Queen's plea to John Bell at the VA straight. Bell said the VA is "exploring all options at this point in time."<br>
<br>"We owe it to our veterans to ensure that we're providing every opportunity to be able to remain in the home," Bell said.<br>
<br>Wednesday, a group of U.S. Senators sent a letter to the VA prompting them to put a hold on anymore foreclosures.<br>
<br>"Without this time out, countless veterans and servicemembers might [unnecessarily lose](https://aurorahousings.com) their homes," Sens. Sherrod Brown, Jon Tester, Jack Reed, and Tim Kaine, all Democrats, wrote 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 pause on all VA loan foreclosures where customers are likely to be eligible for VA's brand-new ... program up until it is readily available and customers can be assessed to see if they certify."<br>
<br>Ray and Becky Queen are hoping the VA does let individuals keep their homes up until the brand-new program can use them a method to get present on their mortgages. Because if the firetruck reveals up after your home has actually burned down, it's not going to do much good for the countless veterans and service members who need aid now.<br>
<br>Transcript<br>
<br>LEILA FADEL, HOST: An NPR examination has found that thousands of 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 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 two young kids. Ray served in Iraq in the Army. Inside their house, he says that he was wounded by an improvised explosive device, or IED.RAY QUEEN: And just so you know, I have mental retardation 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 purchase homes through its VA loan program. And now the VA has actually put this household on the edge of losing their house.B QUEEN: This is the letter that my other half and I received yesterday specifying that they're starting foreclosure proceedings.ARNOLD: What's occurring is that like millions of other Americans, the Queens took benefit of what's called a COVID mortgage forbearance. It was established by Congress after the pandemic hit for individuals who lost earnings. When Becky's mama died of COVID, she had to take a prolonged leave from work and lost her task. Last year, 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 start 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 relocate to the back end of their loan term so they could resume their typical 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 enabled homeowners to do that, although housing supporters and the mortgage market and veterans groups all alerted them not to end the program because thousands of property owners required to capture up on missed out on payments. Rate of interest, too, had actually increased a lot that lots of could not manage to refinance or get back on track any other method. Ray Queen says no one told him about any of this.R QUEEN: How does that happen? This is expected to be a program that y' all need to assist individuals in times of crisis so you don't take their home from them.ARNOLD: The couple states in September, they were informed that they required to come up with a substantial 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 people down.ARNOLD: Kristi Kelly is a customer lawyer in Virginia who's hearing from a lot of veterans who remain in the exact same boat.KELLY: The property owners entered into COVID forbearances. They were made sure promises, and the VA essentially pulled the carpet out from under everybody.ARNOLD: Kelly says for most other homeowners 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 states veterans are being dealt with even worse than a lot of 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 states it had no choice however to end the program. John Bell directs 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 believe the VA did in fact have the authority to extend the program. Now, though, NPR has actually learned that the VA is dealing with a brand-new program to replace the old one, but that's still four or 5 months away - too long for a lot 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 overdue. Today there's pressure on the VA to put a pause on foreclosures while it gets that program running. John Bell says the VA is, quote, "considering all choices."BELL: We owe it to our veterans to make sure that we're providing every chance 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, because if the fire truck reveals up after your home burns down, it's not going to do much great for the thousands of veterans who require aid now.Chris Arnold, NPR News.<br>[logbuch-netzpolitik.de](https://logbuch-netzpolitik.de/lnp458-shedhallenfittinge)