New law to support veterans facing mortgage difficulties
Mackenzie Stafford
EL PASO COUNTY, Colo. (KRDO) — A new law aims to step in for military veterans falling behind on their mortgage payments.
The original safety net for veterans facing foreclosure on their homes, the Veterans Affairs Servicing Purchase Program, was terminated on May 1st.
“Without those protections with VASP [the Veteran Affairs Servicing Purchase Program], the veterans didn’t really have any recourse to protect them,” explained Philip Chavez, a local mortgage expert.
Now, Chavez says H.R.1815, the VA Home Loan Program Reform Act, should help many veterans in our community.
“According to the Veterans Affairs Committee, 20-25% of all foreclosures right now are VA loans. So it was clear that something needed to be done,” said Chavez.
Philip Chavez says this new law will help pick up the brunt of the mortgage payments, with the VA stepping in when the owner might default on their loan.
“It allows the VA to step in early on behalf of the veteran to make their mortgage payments if they’ve been delinquent, or even missed a mortgage payment, the VA will actually make that payment for the borrower to the servicer directly to not only make them current, but to avoid foreclosure. Because ultimately, that’s what we’re trying to do, is just avoid foreclosure,” said Chavez.
He says it will help to bring their payment up to date, avoid dings to their credit, and most of all, help them keep their home.
“Any time somebody loses their home, right, instantly, you’re homeless, you know, and veterans have served this community for as long as I’ve been alive,” says Chavez.
Chavez tells KRDO13 that this is just another way to give back to those who put their lives on the line for us and our country.
“We have a saying in the mortgage industry: it’s a service earned, not a service given. You know, and it’s absolutely true because think about how many veterans served our community,” shared Chavez.
According to Chavez, veterans who need help can reach out to their servicer to learn about the VA Home Loan Protections Act.