VA Has Instituted A Foreclosure Moratorium Until May 31, 2024 For Thousands of Veterans About To Needlessly Lose Their Homes
The Department of Veterans Affairs aka the VA has instituted a foreclosure moratorium for 6 months. The moratorium applies to all veterans and servicemembers who have VA Loans.
The move follows an investigation that found thousands of veterans who took what’s called a COVID forbearance are now at risk of losing their homes through no fault of their own.
As a result, the VA calling on mortgage servicers to halt foreclosures of VA-guaranteed loans through May 31, 2024.
Congress created the forbearance program after the pandemic hit. The plan was to let people who suffered a loss of income skip mortgage payments for six or 12 months. The program also gave people an affordable way to start paying their mortgage again.
But in October 2022, the VA ended the part of the program that allowed veterans an affordable way to get current on their loans again. This left many veterans facing foreclosure. The VA has developed a new program to replace it. However, they say it will take four or five months to implement.
Unfortunately, it’s too late to help many of the 6,000 people with forbearances and are currently in the foreclosure process. ICE Mortgage Technology also says that as many as 34,000 veterans are delinquent.
The VA said in its statement that by pausing foreclosures will help veterans with their loans while they launch the new program. The VA says the program will basically purchase the loans back from the companies that currently hold them. Then, the VA will modify the loan and then hold it within a VA-owned loan portfolio.
Read More About VA Mortgage Foreclosures Below:
Veterans Are Facing Foreclosure By The Thousands
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