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<br>Countless veterans deal with foreclosure and it's not their fault. The VA might help<br>
<br>By Chris Arnold, Robert Benincasa<br>
<br>[Updated](https://www.varni.ae) 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](https://www.grandemlak.com).<br>
<br>"My heart dropped," she said, "and my hands were shaking."<br>
<br>Queen survives on a little farm in rural Oklahoma with her husband, 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 of Veterans Affairs.<br>
<br>Today the VA has actually put this household on the brink of losing their house.<br>
<br>"I didn't do anything wrong," 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 countless other Americans, the Queens took benefit of what's called a COVID mortgage forbearance, which owners to skip mortgage payments. It was established by Congress after the pandemic hit for people who lost earnings.<br>
<br>But an NPR investigation has actually found that [countless veterans](https://sinva.vn) who took a [forbearance](https://al-ahaddevelopers.com) are now at risk of losing their homes through no fault of their own. And while the VA is dealing with a way to fix the problem, for many it might be far 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 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 begun in September of 2021, when Becky's mom passed away of COVID-19. She needed to take an extended leave from work and lost her job.<br>
<br>So last year, with their savings diminishing, the couple says they called the company that manages their mortgage, Mr. Cooper, and were told they could avoid six months of payments. And as soon as they returned on their feet and could start paying once again, the couple states they were informed, they wouldn't owe the missed payments in a huge lump 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 relocated to the back end of their loan term so they might just begin making their normal 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 [allowed homeowners](http://app.vellorepropertybazaar.in) to do that. This occurred even though the mortgage market, housing supporters and veterans groups all warned the VA not to end the program, saying countless property owners needed to capture up on missed out on [payments](https://starzijproperties.ng). Interest rates had risen a lot that numerous could not afford to refinance or return on track any other way.<br>
<br>Ray Queen states no one told 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 help individuals in times of crisis, so you do not take their home from them."<br>
<br>The Queens say they attempted to come off their forbearance 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.<br>
<br>Then, in September, the couple says they were told they needed to come up with more than $22,000, which they do not have, or either sell their house or get foreclosed on.<br>
<br>Their mortgage servicing company, Mr. Cooper, said in a declaration it "checked out every possible opportunity to work through a solution for this consumer." But it stated the VA requires much better loss-mitigation choices and referred NPR to a letter from advocates, market and veteran groups prompting the VA to restart the PCP program.<br>
<br>The VA "has really let people down"<br>
<br>"The Department of Veterans Affairs has really let people down," says Kristi Kelly, a customer attorney in Virginia who says she is speaking with a great deal of other veterans in the same circumstance as Ray and Becky Queen.<br>
<br>"The property owners entered into COVID forbearances, they were made sure pledges, and there were particular representations that were made," says Kelly. "And the VA basically pulled the carpet out from under everybody."<br>
<br>For some property owners, ending the program might not suggest foreclosure, however it still suggests a monetary difficulty.<br>
<br>"Many of these people have 2 or 3% rate of interest loans," Kelly states. With the PCP program they could keep that rate of interest. Now, she says, the only way they'll have the ability to save their home is to get in into a loan adjustment where the rate 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, since the VA has decided to end the partial claim program."<br>
<br>Many homeowners can't afford such a huge increase in their month-to-month payment.<br>
<br>According to the data company ICE Mortgage Technology, 6,000 homeowners with VA loans who had actually COVID forbearances are currently in the foreclosure process. And 34,000 more are delinquent.<br>
<br>Kelly says most other homeowners in America - people with FHA loans, for circumstances, 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 house owners with VA loans don't, since the VA ended that program. So veterans are being treated even worse than most other house owners, [Kelly stated](https://trianglebnb.com).<br>
<br>"Service members are 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 is in their homes."<br>
<br>VA has a strategy to assist, but it could be far too late<br>
<br>The Department of Veterans Affairs states it had no option but 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 regular authority."<br>
<br>Some in the industry think the VA did, in reality, have the authority to extend the program. But in either case, it ended it.<br>
<br>Now, though, the VA is taking the [scenario](https://remaxjungle.com) seriously.<br>
<br>NPR has actually discovered that the VA is working on a brand-new program to replace the old one. It will work in a different way however to similar impact, to save people from foreclosure. Bell says it's going to take four to 5 months to get it up and running.<br>
<br>That's too wish for numerous of those 6,000 VA house owners already in the foreclosure process. Not to mention the numerous more who are overdue.<br>
<br>Already, data shows that more VA homeowners have actually been heading into foreclosure since 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 show up too late?<br>
<br>With a lot of homeowners at threat, there's growing pressure on the VA to stop [foreclosing](https://bedsby.com) on veterans till it gets its fix up and running.<br>
<br>"There should be a pause on foreclosures," states Steve Sharpe, a [senior attorney](https://magnoliasresidence.com) at the National Consumer Law Center. "Veterans should 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've had something that will really work.<br>
<br>Sharpe says the VA could likewise restart the PCP program that it closed down. "They have the authority to do both," he says.<br>
<br>Pausing foreclosures seems like a good concept to veteran Ray Queen in Oklahoma.<br>
<br>"Let us keep paying towards our routine mortgage in between now and then," he states. "Then once the VA has actually that fixed we can return and deal with the scenario. 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 said the VA is "checking out all options at this moment in time."<br>
<br>"We owe it to our veterans to make certain that we're providing them 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 advising them to put a hold on anymore foreclosures.<br>
<br>"Without this time out, thousands of 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 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 execute an immediate pause on all VA loan foreclosures where customers are likely to be [qualified](https://atworldproperties.co.za) for VA's new ... program until it is readily available and customers can be evaluated to see if they qualify."<br>
<br>Ray and Becky Queen are hoping the VA does let people keep their homes until the brand-new program can use them a way to get current on their mortgages. Because if the firetruck appears after your home has burned down, it's not going to do much great for the countless veterans and service members who need 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 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 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 understand, I have mental retardation from my time in Iraq. So there's a lot of different things that do not work the method they're supposed 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 actually put this family on the brink of losing their house.B QUEEN: This is the letter that my hubby and I got the other day specifying that they're beginning foreclosure proceedings.ARNOLD: What's occurring is that like countless 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 people who lost earnings. When Becky's mommy died of COVID, she needed to take an extended leave from work and lost her task. In 2015, the couple says their mortgage business told them that they could skip 6 months of payments while they returned on their feet and after that just begin paying their mortgage again.B QUEEN: I really 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 regular mortgage payment. But that is not how it worked out, since a year ago in October, the Department of Veterans Affairs ended the program that allowed homeowners to do that, despite the fact that housing advocates and the mortgage market and veterans groups all cautioned them not to end the program since thousands of property owners needed to catch up on missed out on payments. Rate of interest, too, had actually increased so much that numerous couldn't afford to re-finance or return on track any other way. Ray Queen says no one informed him about any of this.R QUEEN: How does that occur? 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 states in September, they were informed that they needed 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 really let people down.ARNOLD: Kristi Kelly is a consumer lawyer in Virginia who's hearing from a lot of veterans who remain in the same boat.KELLY: The property owners participated in COVID forbearances. They were made particular pledges, and the VA basically pulled the rug out from under everybody.ARNOLD: Kelly states for a lot of other property owners in America, there are still ways to move your missed 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 treated 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, are in their homes.ARNOLD: For its part, the Department of Veterans Affairs says it had no choice 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 particular program throughout COVID.ARNOLD: Some in the market think the VA did in fact have the authority to extend the program. Now, though, NPR has discovered that the VA is working on 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 homeowners with VA loans who remain 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 states the VA is, quote, "thinking about all options."BELL: We owe it to our veterans to ensure 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, due to the fact that if the fire truck shows up after the home burns down, it's not going to do much great for the thousands of veterans who require help now.Chris Arnold, NPR News.<br>[templetons.com](https://www.templetons.com/brad/robocars/)