The Army Times is reporting that the U.S. Department of Veterans Affairs is pausing foreclosures on homes financed with VA loans for 6 months. They say the move comes after a recent NPR report that found thousands of veterans in danger of losing their homes because of the end of the Veterans Assistance Partial Claim Payment program in late 2022. The Military Times says NPR reported that about 6k individuals with VA home loans have already entered the foreclosure process as a result of the problems.
In a statement, VA Press Secretary Terrence Hayes said the department will push all mortgage companies to pause foreclosures on VA-guaranteed loans through May 31, 2023. Department leaders will also extend the COVID-19 Refund Modification program through that date.
The modification program “will allow veterans to obtain a zero-interest, deferred-payment loan from VA to cover missed payments and modify their existing VA-guaranteed loan to achieve affordable monthly payments for the duration of this extension,” Hayes said. It was set to expire at the end of the year.