commit 9f88c939bf48fdec109d4eb7cb43aaee28e09f73 Author: katrinacallina Date: Wed Jun 18 18:46:42 2025 +0800 Add Countless Veterans Face Foreclosure and it's not their Fault. the vA could Help diff --git a/Countless-Veterans-Face-Foreclosure-and-it%27s-not-their-Fault.-the-vA-could-Help.md b/Countless-Veterans-Face-Foreclosure-and-it%27s-not-their-Fault.-the-vA-could-Help.md new file mode 100644 index 0000000..4f7bcd5 --- /dev/null +++ b/Countless-Veterans-Face-Foreclosure-and-it%27s-not-their-Fault.-the-vA-could-Help.md @@ -0,0 +1,56 @@ +
Countless veterans deal with foreclosure and it's not their fault. The VA could assist
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By Chris Arnold, Robert Benincasa
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Updated Thursday, November 16, 2023 • 9:53 AM EST
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Heard on [Morning](https://drakebayrealestate.com) Edition
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Becky Queen remembers opening the letter with the [foreclosure notice](https://asmauburn.com).
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"My heart dropped," she said, "and my hands were shaking."
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Queen lives on a small farm in [rural Oklahoma](https://www.22401414.com) with her other half, 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.
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But now the VA has actually put this household on the brink of losing their home.
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"I didn't do anything incorrect," says Ray Queen. "The only thing I did was trust a business that I'm expected to trust with my mortgage."
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Like countless other Americans, the Queens took advantage of what's called a COVID mortgage forbearance, which permitted property owners to skip [mortgage payments](https://barupert.com). It was set up by Congress after the pandemic hit for people who lost income.
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But an NPR examination has actually discovered that countless 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 fix the problem, for lots of it might be too late.
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After NPR at first published this story, a group of 4 U.S. Senators sent out a letter to the VA asking it to right away stop [foreclosing](https://kenyapropertyfinder.com) on the homes of veterans and servicemembers. It's if the VA will do that.
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For the Queens, this all begun in September of 2021, when [Becky's mother](https://inpattaya.net) died of COVID-19. She had to take an extended leave from work and lost her task.
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So in 2015, with their cost savings decreasing, the couple states they called the company that handles their mortgage, Mr. Cooper, and were [informed](https://donprimo.ph) they might skip six months of payments. And as soon as they got back on their feet and might begin paying again, the couple states they were informed, they would not owe the missed payments in a big swelling sum.
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"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."
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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 normal mortgage payment once again.
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But that's not how it exercised.
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In October 2022, the Department of Veterans Affairs ended the so-called Partial Claim Payment program, or PCP, that made it possible for property owners to do that. This took place although the mortgage industry, housing advocates and veterans groups all warned the VA not to end the program, stating countless property owners needed to capture up on missed out on payments. Rates of interest had actually increased so much that numerous couldn't pay for to re-finance or get back on track any other method.
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Ray Queen says no one informed him about any of this.
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"How does that happen?" Queen asked. "This is expected to be a program that you all need to assist people in times of crisis, so you don't take their home from them."
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The Queens state they attempted to come off their [forbearance](https://vipnekretnine.hr) in February of this year and resume paying their mortgage. They were both working once again. But they ran into delays with the mortgage company.
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Then, in September, the couple says they were told they required to come up with more than $22,000, which they do not have, or either offer their home or get foreclosed on.
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Their mortgage servicing company, Mr. Cooper, stated in a declaration it "checked out every possible opportunity to overcome an option for this customer." But it stated the VA needs much better loss-mitigation alternatives and referred NPR to a letter from supporters, market and veteran groups urging the VA to reboot the PCP program.
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The VA "has really let individuals down"
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"The Department of Veterans Affairs has truly let individuals down," says Kristi Kelly, a consumer attorney in [Virginia](https://therealoasis.com) who states she is hearing from a lot of other veterans in the same circumstance as Ray and [Becky Queen](https://2c.immo).
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"The house owners got in into COVID forbearances, they were made certain guarantees, and there were certain representations that were made," states Kelly. "And the VA essentially pulled the carpet out from under everybody."
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For some house owners, ending the program may not suggest foreclosure, however it still indicates a financial hardship.
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"A lot of these individuals have 2 or 3% rate of interest loans," Kelly says. With the [PCP program](https://cyppro.com) they might keep that rate of interest. But now, she states, the only method they'll be able to save their home is to participate in a [loan modification](https://samui-island-realty.com) where the rates of interest will be around today's market rate of 7.5%.
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"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."
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Many property owners can't manage such a substantial increase in their monthly payment.
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According to the information firm ICE Mortgage Technology, 6,000 homeowners with VA loans who had COVID forbearances are presently in the foreclosure procedure. And 34,000 more are overdue.
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Kelly states most other house owners in America - people with FHA loans, for example, 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.
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But property owners with VA loans don't, since the VA ended that program. So veterans are being dealt with even worse than most other homeowners, Kelly stated.
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"Service members remain in a position where they're going to lose their home," she states. "And for a lot of individuals, that's everything they work for - and all their wealth is in their homes."
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VA has a plan to assist, however it might be far too late
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The Department of Veterans Affairs says it had no choice but to end the program.
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"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."
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Some in the market think the VA did, in truth, have the authority to extend the program. But in any case, it ended it.
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Now, though, the VA is taking the situation seriously.
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NPR has learned that the VA is dealing with a new program to change the old one. It will operate in a various way however to comparable impact, to conserve people from foreclosure. Bell says it's going to take 4 to five months to get it up and running.
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That's too wish for a number of those 6,000 VA house owners currently in the foreclosure procedure. Not to mention the lots of more who are delinquent.
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Already, information shows that more VA house owners have actually been heading into foreclosure given that the VA ended its [PCP program](https://oferte.cazarecostinesti.ro). The exact same is not real for FHA loans or loans backed by Fannie Mae or Freddie Mac.
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Will the firetruck show up too late?
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With numerous house owners at danger, there's growing pressure on the VA to stop foreclosing on veterans till it gets its fix up and running.
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"There ought to be a time out on foreclosures," says Steve Sharpe, a senior attorney at the National Consumer Law Center. "Veterans must actually be able 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.
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Sharpe states the VA could likewise reboot the PCP program that it closed down. "They have the authority to do both," he says.
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Pausing foreclosures sounds like a great concept to veteran Ray Queen in Oklahoma.
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"Let us keep paying towards our regular mortgage between now and then," he says. "Then as soon as the VA has that repaired we can come back and attend to the circumstance. That appears like the adult, fully grown thing to do, not put a household through hell."
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NPR duplicated Ray Queen's plea to John Bell at the VA straight. Bell stated the VA is "exploring all choices at this moment in time."
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"We owe it to our veterans to make certain that we're [providing](https://alranimproperties.com) them every opportunity to be able to remain in the home," Bell said.
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Wednesday, a group of U.S. Senators sent a letter to the VA advising them to put a hang on any more foreclosures.
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"Without this pause, thousands of 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 ever the intent of Congress."
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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 new ... program until it is available and borrowers can be assessed to see if they qualify."
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Ray and Becky Queen are hoping the VA does let people keep their homes till the new program can provide them a method to get present on their mortgages. Because if the firetruck reveals up after your house has actually burned down, it's not going to do much excellent for the countless veterans and service members who require aid now.
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Transcript
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LEILA FADEL, HOST: An NPR examination has actually 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 fix. But it could 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 house, he says that he was injured 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 great deal of various things that don't work the way they're expected to any longer. And my memory is not great.ARNOLD: For decades, the federal government's helped veterans like Queen to purchase homes through its VA loan program. Now the VA has put this household on the edge of losing their house.B QUEEN: This is the letter that my other half and I received the other day specifying that they're beginning foreclosure proceedings.ARNOLD: What's happening is that like millions of other Americans, the Queens benefited from what's called a COVID mortgage forbearance. It was established by Congress after the pandemic hit for people who lost earnings. When Becky's mama passed away of COVID, she had to take an extended leave from work and lost her job. Last year, the couple states their mortgage company informed them that they could avoid 6 months of payments while they got back on their feet and after that simply start paying their mortgage again.B QUEEN: I very particularly 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 regular 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 house owners to do that, even though housing supporters and the mortgage industry and veterans groups all cautioned them not to end the program due to the fact that countless house owners needed to catch up on missed payments. Rates of interest, too, had actually increased so much that lots of couldn't afford to re-finance or return on track any other way. Ray Queen states nobody told him about any of this.R QUEEN: How does that take place? This is supposed to be a program that y' all need to assist people in times of crisis so you do not take their home from them.ARNOLD: The couple states in September, they were informed that they needed to come up with a substantial payment - upwards of $22,000, which they do not 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 individuals down.ARNOLD: Kristi Kelly is a consumer legal representative in Virginia who's hearing from a lot of veterans who remain in the same boat.KELLY: The house owners entered into COVID forbearances. They were made sure pledges, and the VA essentially pulled the carpet out from under everybody.ARNOLD: Kelly says for many other homeowners 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 worse than the majority of other homeowners.KELLY: Service members are going to lose their home, and for the majority of people, that's everything they work for and all their wealth, remain in their homes.ARNOLD: For its part, the Department of Veterans Affairs states it had no option 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 industry believe the VA did really have the authority to extend the program. Now, though, NPR has actually discovered that the VA is dealing with a brand-new program to change the old one, but that's still four or 5 months away - too wish for a number of the 6,000 house owners with VA loans who are in the foreclosure process. 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 states the VA is, quote, "thinking about all alternatives."BELL: We owe it to our veterans to make certain that we're providing 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, since if the fire engine shows up after your house burns down, it's not going to do much good for the thousands of veterans who require help now.Chris Arnold, NPR News.
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