06/07/2024

The VA Tells Banks not to Foreclose on Veterans’ Homes in 2024

A moratorium they issued has been extended

The Department of Veterans Affairs has extended a moratorium on foreclosures for vets with GI Bill home loans. The move gives mortgage companies more time to get a new program up and running to rescue veterans who were facing foreclosure through no fault of their own.

“We’re calling on mortgage servicers to follow a targeted foreclosure moratorium so we can make sure that Veterans get the support they need to stay in their homes,” Under Secretary for Benefits Josh Jacobs said in a statement.

The VA initially asked mortgage companies last year to halt all foreclosures after an NPR investigation revealed that the VA had abruptly ended a key part of a pandemic mortgage relief program, stranding tens of thousands of vets who were still in the middle of it with no way to get current on their home loans. The end-date on that foreclosure moratorium was May 31st. Mortgage companies will now have until the end of 2024 to implement the VA’s new rescue plan — the Veterans Affairs Servicing Purchase (VASP) program. It’s welcome news to veterans stuck in limbo.

Please select this link to read the complete article from NPR.