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

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

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+<br>Thousands of veterans deal with [foreclosure](https://homes.lc) 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 notification.<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 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](https://www.varni.ae) through its VA loan program, run by the [Department](https://premiergroup-eg.com) of [Veterans Affairs](https://jassbrar.ca).<br>
+<br>Now the VA has 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 business that I'm expected to rely on with my mortgage."<br>
+<br>Like millions of other Americans, the Queens made the most of what's called a COVID mortgage forbearance, which permitted property owners to skip mortgage payments. It was set up by [Congress](https://donprimo.ph) after the pandemic hit for individuals who lost earnings.<br>
+<br>But an NPR investigation has actually found that thousands of veterans who took a forbearance are now at risk of losing their homes through no fault of their own. And while the VA is working on a way to fix the issue, for numerous it could be too late.<br>
+<br>After NPR at first released this story, a group of four U.S. Senators sent a letter to the VA asking it to instantly stop foreclosing on the homes of veterans and servicemembers. It's unclear if the VA will do that.<br>
+<br>For the Queens, this all begun in September of 2021, when Becky's mom died of COVID-19. She had to take an extended leave from work and lost her task.<br>
+<br>So last year, with their cost savings dwindling, the couple says they called the business that manages their mortgage, Mr. Cooper, and were informed they might avoid six months of payments. And when they returned on their feet and could start paying once again, the couple states they were told, they would not owe the missed payments in a huge swelling sum.<br>
+<br>"I extremely particularly 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 payments would be relocated to the back end of their loan term so they could simply begin 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 enabled house owners to do that. This happened even though the mortgage market, housing advocates and veterans groups all alerted the VA not to end the program, stating countless homeowners needed to capture up on missed payments. Rate of interest had actually increased a lot that numerous could not manage to re-finance or get back on track any other way.<br>
+<br>Ray Queen states nobody informed him about any of this.<br>
+<br>"How does that take place?" Queen asked. "This is supposed to be a program that you all need to assist people 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 again. But they faced delays with the mortgage company.<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 offer their house or get foreclosed on.<br>
+<br>Their mortgage servicing company, Mr. Cooper, stated in a statement it "checked out every possible avenue to work through an option for this consumer." But it stated the VA needs better loss-mitigation alternatives and referred NPR to a letter from supporters, industry and veteran groups advising the VA to reboot the [PCP program](https://internationalpropertyalerts.com).<br>
+<br>The VA "has really let people down"<br>
+<br>"The Department of Veterans Affairs has actually let individuals down," states Kristi Kelly, a consumer attorney in Virginia who says she is hearing from a lot of other veterans in the exact same scenario as Ray and Becky Queen.<br>
+<br>"The homeowners participated in COVID forbearances, they were ensured guarantees, and there were certain representations that were made," says Kelly. "And the VA essentially pulled the carpet out from under everyone."<br>
+<br>For some property owners, ending the program might not mean foreclosure, however it still means a financial difficulty.<br>
+<br>"Much of these individuals have 2 or 3% rates of interest loans," Kelly states. With the PCP program they could keep that rate of interest. Today, she says, the only way they'll be able to conserve their home is to enter into a loan modification where the rates of interest will be around today's market rate of 7.5%.<br>
+<br>"For most people, their payments will increase by $600 or $700 a month, because the VA has actually decided to end the partial claim program."<br>
+<br>Many property owners can't afford such a huge increase in their monthly payment.<br>
+<br>According to the data firm ICE Mortgage Technology, 6,000 property owners with VA loans who had actually COVID forbearances are currently in the foreclosure process. And 34,000 more are overdue.<br>
+<br>Kelly says most other property owners in America - people with FHA loans, for instance, or loans backed by Fannie Mae and Freddie Mac - still have ways to avoid foreclosure by [moving missed](https://propcart.co.ke) payments to the back of the loan term.<br>
+<br>But homeowners with VA loans don't, due to the fact that the VA ended that program. So veterans are being dealt with worse than a lot of other property owners, Kelly said.<br>
+<br>"Service members remain in a position where they're going to lose their home," she states. "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 help, however it could be too late<br>
+<br>The Department of Veterans Affairs says it had no choice however to end the program.<br>
+<br>"We had a short-term authority for that specific program during COVID," states John Bell, executive director of the Veterans Benefits Administration's Loan Guaranty Service. "It wasn't part of our normal authority."<br>
+<br>Some in the industry believe the VA did, in truth, have the authority to extend the program. But in any case, it ended it.<br>
+<br>Now, however, the VA is taking the scenario seriously.<br>
+<br>NPR has learned that the VA is working on a new program to replace the old one. It will operate in a different method but to similar impact, to conserve people from foreclosure. Bell states it's going to take four to 5 months to get it up and running.<br>
+<br>That's too long for much of those 6,000 VA property owners already in the [foreclosure](https://www.aws-properties.com) process. Not to point out the lots of more who are .<br>
+<br>Already, data shows that more VA house owners have been heading into foreclosure given that the VA ended its PCP program. The very same is not true for FHA loans or loans backed by Fannie Mae or Freddie Mac.<br>
+<br>Will the firetruck arrive far too late?<br>
+<br>With so lots of house owners at danger, there's growing pressure on the VA to stop foreclosing on veterans till it gets its spruce up and running.<br>
+<br>"There need to be a time out on foreclosures," says Steve Sharpe, a senior attorney at the National Consumer Law Center. "Veterans ought to actually be able to have a capability to access this program when it comes online since it's been so long considering that they have actually had something that will truly work.<br>
+<br>Sharpe says the VA might also reboot the PCP program that it closed down. "They have the [authority](https://jghills.com) to do both," he says.<br>
+<br>Pausing foreclosures sounds like an excellent idea to veteran Ray Queen in Oklahoma.<br>
+<br>"Let us keep paying towards our routine mortgage between from time to time," he says. "Then once the VA has that repaired we can come back and attend to the [scenario](https://alranimproperties.com). That looks 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 directly. Bell stated the VA is "checking out all [options](https://www.greencastlebnb.com) at this moment in time."<br>
+<br>"We owe it to our veterans to ensure that we're offering them every opportunity to be able to stay in the home," Bell stated.<br>
+<br>Wednesday, a group of U.S. Senators sent a letter to the VA urging them to put a hold on any more foreclosures.<br>
+<br>"Without this time out, countless veterans and servicemembers might 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 [implement](https://inngoaholidays.com) an immediate time out on all VA loan foreclosures where borrowers are most likely to be eligible for VA's brand-new ... program until it is available and customers can be evaluated to see if they certify."<br>
+<br>Ray and Becky Queen are hoping the VA does let people keep their homes till the brand-new program can provide them a method to get existing on their mortgages. Because if the firetruck shows up after your home has burned down, it's not going to do much great for the thousands of veterans and service members who require assistance now.<br>[lakeplacidinns.com](http://www.lakeplacidinns.com/)
+<br>Transcript<br>
+<br>LEILA FADEL, HOST: An NPR examination has discovered 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 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 2 young kids. Ray served in Iraq in the Army. Inside their home, he states that he was injured by an improvised explosive device, or IED.RAY QUEEN: And so you're conscious, I have brain damage from my time in Iraq. So there's a great deal 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 assisted veterans like Queen to buy homes through its VA loan program. Now the VA has put this household on the verge of losing their house.B QUEEN: This is the letter that my other half and I received the other day stating that they're starting foreclosure proceedings.ARNOLD: What's taking place is that like millions of other Americans, the Queens made the most 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 mom died of COVID, she needed to take a prolonged leave from work and lost her job. In 2015, the couple says their mortgage business told them that they could skip six months of payments while they returned on their feet and after that just 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 relocate to the back end of their loan term so they might resume their normal mortgage payment. But that is not how it exercised, because a year ago in October, the Department of Veterans Affairs ended the program that made it possible for house owners to do that, although housing supporters and the mortgage industry and veterans groups all warned them not to end the program since countless homeowners required to catch up on missed payments. Interest rates, too, had actually risen so much that many couldn't manage to re-finance or get back on track any other method. Ray Queen says no one told him about any of this.R QUEEN: How does that occur? This is expected 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 states in September, they were told that they required to come up with a huge payment - upwards of $22,000, which they do not 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 legal representative in Virginia who's hearing from a great deal of veterans who are in the same boat.KELLY: The property owners participated in COVID forbearances. They were ensured promises, and the VA essentially pulled the rug out from under everybody.ARNOLD: Kelly says for most other house 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, but not if you have a VA loan. So she says veterans are being dealt with worse than most other homeowners.KELLY: Service members are going to lose their home, and for many people, that's whatever they work for and all their wealth, remain in their homes.ARNOLD: For its part, the Department of Veterans Affairs states it had no choice however to end the program. John Bell heads up the VA's home lending division.JOHN BELL: We had a short-term authority for that particular program during COVID.ARNOLD: Some in the market 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 new program to replace the old one, however that's still 4 or five months away - too long for many of the 6,000 property owners with VA loans who remain in the foreclosure process. Not to point out there's 34,000 more who were overdue. 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, "considering all choices."BELL: We owe it to our veterans to make sure that we're giving them every chance to be able to remain in the home.ARNOLD: Ray and Becky Queen are hoping that the VA does put a time out on foreclosures, because if the fire engine shows up after your house burns down, it's not going to do much helpful for the countless veterans who require aid now.Chris Arnold, NPR News.<br>