[HN Gopher] 1000s of veterans face foreclosure and it's not thei...
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1000s of veterans face foreclosure and it's not their fault. The VA
could help
Author : rntn
Score : 26 points
Date : 2023-11-11 15:46 UTC (7 hours ago)
(HTM) web link (text.npr.org)
(TXT) w3m dump (text.npr.org)
| thegrim22 wrote:
| I'm trying to figure out what this article is saying, how people
| could be losing their homes but it not being "their fault". The
| best I can understand is that these people had their loan
| payments deferred for COVID, and now their payments are resuming,
| but interest rates have risen in the meantime, and so now when
| their payments are resuming they have to pay more because of
| higher interest rates, and they can't afford to pay it. So ...
| they took out a loan with a variable interest rate, they can't
| pay the loan now that interest rates have changed, and so it's
| "not their fault" because these programs refused to keep allowing
| them to defer payments?
| lcnPylGDnU4H9OF wrote:
| They were allowed to defer payments, placing those at the end
| of the "queue" of payments. Then the program was cancelled
| before the extended terms of the loans.
|
| > In October 2022, the Department of Veterans Affairs ended the
| so-called Partial Claim Payment program, or PCP, that enabled
| homeowners to do that. This happened even though the mortgage
| industry, housing advocates and veterans groups all warned the
| VA not to end the program, saying thousands of homeowners
| needed to catch up on missed payments. Interest rates had risen
| so much that many couldn't afford to refinance or get back on
| track any other way.
| fragmede wrote:
| it doesn't sound like they had an ARM though. it sounds like
| the VA program ending means the borrowers owe the payments they
| missed during covid as a lump sum
| LiquidPolymer wrote:
| My spouse receives union publication and she showed me a similar
| story that had me scratching my head. The story was about a union
| member who was losing his home through foreclosure and he and his
| wife had nowhere to go. Reading a bit further revealed that the
| union worker had stopped paying his mortgage because of a
| misunderstanding about supplemental insurance that he thought
| covered his mortgage. He ignored the many notices of foreclosure,
| ignored the court summons, and yet was surprised when he and his
| wife were evicted. The quotes from the homeowner revealed a
| tenuous grasp of reality. I felt really bad for the guy but he
| clearly made a series of very bad decisions. The article headline
| suggested he was a victim of greedy banks, yet the reporting was
| clearly pointing to a deeper problem.
|
| The writer appeared to be taking for granted the idea that
| housing is a right not a privilege. It was a weird take.
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(page generated 2023-11-11 23:02 UTC)