Following Kaine & Colleagues’ Push, VA Pauses Foreclosures for Veterans at Risk of Losing their Homes
WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine, a former fair housing lawyer, applauded the U.S. Department of Veterans Affairs (VA) announcement that the VA will pause foreclosures for veterans and servicemembers using VA home loans for six months to ensure they can stay in their homes. The announcement follows a push by Kaine and U.S. Senators Sherrod Brown (D-OH), Jon Tester (D-MT), and Jack Reed (D-RI) to urge the VA to take immediate action to prevent thousands of veterans and servicemembers who used VA home loan guarantee benefits from losing their homes.
“Our veterans, servicemembers, and their families have sacrificed so much for us, and we owe them our gratitude and support,” said Kaine. “I’m glad the VA heeded our call by taking this positive step to help our veterans and servicemembers stay in their homes. I’ll keep fighting to support those who have served and encourage the Department to implement a long-term solution as quickly as possible.”
Veterans and servicemembers with VA home loans who faced financial difficulties during the COVID-19 pandemic used forbearance to pause their mortgage payments without penalty. The VA previously offered solutions to help borrowers exit forbearance and get back on track with their payments, but for more than a year, veterans have not had a viable option to bring their mortgages current, leaving them vulnerable to losing their homes.
To ensure these veterans and servicemembers can stay in their homes, the VA is calling on mortgage servicers to pause foreclosures of VA home loans through May 31, 2024. It is also extending the COVID-19 Refund Modification program through May 31, 2024, to allow veterans to access a zero-interest, deferred-payment loan from the Department to cover missed payments and modify their existing VA loan to achieve affordable monthly payments for the duration of this extension.
In addition to pausing foreclosures and extending the COVID-19 Refund Modification program, the VA is continuing its efforts to launch the Department’s newest home retention option, the VA Servicing Purchase Program. This new program will help more veterans lower their payments and remain in their homes.
If you are a veteran who is struggling to make your VA home loan payment, visit www.va.gov/housing-assistance or call 877-827-3702 for assistance.