According to Yahoo, a number of U.S. veterans with homes backed by the Department of Veterans Affairs (VA) have received a letter from the VA informing them they are at risk of their homes being foreclosed upon.
In response to these letters, Democrats on the House Veterans Affairs Committee, Reps. Mark Takano, Chris Pappas, and Nikki Budzinski, have submitted a letter to VA requesting an explanation for the mistake.
“For many veterans and their families, such a Secretary Doug Collins notice can cause significant distress, confusion, and financial hardship—even if issued in error. We are equally alarmed that this error took place and that VA has failed to notify Congress, which is unacceptable,” wrote the Representatives in the letter.
According to the letter, approximately 35,000 homeowners with mortgages through VA programs received the letter.
“We respectfully request an immediate written explanation of how this failure occurred, what corrective actions are being taken, and how VA intends to prevent similar mistakes in the future,” said the letter. “We further request that VA contact each impacted borrower and explain to them what happened and present them an accurate summary of their current mortgage status.”
According to one of the vets who received the erroneous letter, it stated that a VA loan technician would be in contact “because your loan servicer indicated to us that you are behind on your Department of Veterans Affairs (VA) home loan payments.”
The letter also stated that borrowers who were current on their payments did not need to take action, but for those who had fallen behind, the VA recommended they reach out to their loan servicer. Additional pages had links directing veterans to additional assistance.
“This alarming situation comes at a time when VA has ended critical measures designed to help veterans avoid foreclosure,” said the letter. “The Veterans Assistance Servicing Program (VASP) offered struggling borrowers stability during difficult times, and VA’s rash decision to cancel that critical program has left many veterans and their families at risk of losing their homes. Against that backdrop, the widespread distribution of inaccurate foreclosure notices not only undermines confidence in VA’s loan servicing operations but also places undue emotional and financial strain on veterans who rely on VA for accuracy, support, and advocacy.”
President Donald Trump recently signed HR 1815 into law, the VA Home Loan Program Reform Act. Sponsored by Rep. Derrick Van Orden of Wisconsin, the bill will create a partial claim program at the VA in an effort to modernize the VA Home Loan program–which currently serves 3.7 million veterans–to allow veterans who have fallen behind on their mortgages to receive federal assistance already available through other federal housing programs.
The House Committee on Veterans’ Affairs reports that nearly 70,000 veteran homeowners are more than 90 days late on their mortgage payments.
HR 1815 provides these vets with relief and the opportunity to keep their homes as a result of the new program. The VA Home Loan Program Reform Act also includes the proper funding levels for the VA Grant and Per Diem program, as part of VA’s homelessness prevention programs to fund community agencies providing services to veterans experiencing homelessness.
“Our nation owes veterans not just gratitude but reliable, competent administration of the benefits they have earned and deserve. We urge you to treat this matter with the utmost urgency and provide a public accounting of steps being taken to ensure no veteran is wrongly placed at risk of foreclosure due to administrative error,” concluded the letter from Reps. Takano, Pappas, and Budzinski.
Click here to read the letter from Reps. Takano, Pappas, and Budzinski to VA Secretary Doug Collins.
