President Donald Trump has recently signed a new bipartisan bill to help protect veterans facing foreclosure on their homes. The VA Home Loan Program Reform Act will assist veterans who have fallen behind on their mortgage payments by extending their due date to the end of the loan term.
Also known as House Resolution (HR) 1815, the bill authorizes the Department of Veterans Affairs (VA) to take certain actions in cases of default on home loans under the VA home loan program and establishes a partial claim program.
HR 1815 authorizes the VA to pay the holder of a loan guaranteed by the VA an amount necessary to avoid the foreclosure of the loan.
This is allowed if the holder of the loan and the veteran obligated on the loan execute documents to ensure the VA obtains a secured interest in the property covered by the loan.
The VA is also given authority to prescribe loss mitigation procedures, helping to prevent the foreclosure of such a home loan. However, the VA may not take specified administrative actions until the sequence of mitigation options has been completed.
HR 1815 also establishes a five-year Partial Claim Program, under which the VA may make a partial claim on VA loans for primary residences that are in default or are at risk of default.
Finally, the bill requires the VA to report to Congress on its strategy to ensure that veterans who purchase homes under the VA home loan program are not at a disadvantage when attempting to secure representation by a real estate agent.
HR 1815 has been celebrated as a necessary step to protecting veterans from both sides of the aisle.
For example, Senator Jon Ossoff (D) released an official statement in a press release from his office. In the press release, his team claimed that he was partially responsible for the bill’s success.
“Veterans’ benefits are earned. This is a sacred contract between the American people and those who make tremendous sacrifices in defense of our nation,” Sen. Ossoff stated. “With the cost of living so high, now more than ever, the American people need to stand behind our veterans and help protect those who have served from foreclosure.”
