6,000 veterans were reportedly facing foreclosure due to the end of the pandemic program.
The Department of Veterans Affairs (VA) has announced the extension of the pandemic-era program that recalculates mortgage loans for veterans who are homeowners. This reverses the previous decision to end the program in October 2022.
The department set up the program at the beginning of the pandemic to allow veteran homeowners to enter forbearance between six to twelve months. Once the forbearance period ended, the VA would restructure their mortgage payment plans so that veterans didn’t have to pay the backlog from the pause all at once.
When the VA canceled that program in October 2022, veterans were faced with backlogged mortgage payments. As of this month, 6,000 veterans were reportedly in the process of foreclosure due to the decision to end the program. The department reinstated the program shortly after an investigative news article was published.
“Helping Veterans and their families stay in their homes is a top priority at VA. We are calling on mortgage servicers to pause foreclosures of VA-guaranteed loans through May 31, 2024,” VA Press Secretary Terrence Hayes stated in the announcement of the reversal.
As the Lord Leads, Pray with Us…
- For Under Secretary Joshua Jacobs as he heads the Veterans Benefits Administration.
- For wisdom for Secretary McDonough as he leads the Department of Veterans Affairs.
- With gratitude that the department has reversed course on foreclosing on veteran homeowners.
Sources: Task and Purpose, NPR
