| Veterans
News Flash 
VA Reaching Out to Vets with
Mortgage Problem
June
12, 2008
Peake: VA Has a “Solid
Record of Success” in Helping
WASHINGTON – Many home
owners have found it difficult recently to pay
their mortgages, but quick intervention by loan
counselors at the Department of Veterans Affairs
(VA) has actually reduced the number of Veterans
defaulting on their home loans.
“VA is reaching out
to Veterans -- both those who use our home-loan
guaranty program and those who don’t take
advantage of our guaranties -- to keep people in
their homes,” said Secretary of Veterans
Affairs Dr. James B. Peake. “I’m proud
of our solid record of success in helping Veterans
and active-duty personnel deal with financial crises.”
Accounting for much of this
success are VA counselors at nine regional loan
centers who assist people with VA-guarantied loans
avoid foreclosure through counseling and special
financing arrangements. The counselors also can
assist other Veterans with financial problems.
VA counselors have helped about 74,000 Veterans,
active-duty members and survivors keep their homes
since 2000, a savings to the government of nearly
$1.5 billion.
Depending on a veteran’s
circumstances, VA can intercede with the borrower
on the veteran’s behalf to pursue options
-- such as repayment plans, forbearance, and loan
modifications -- that would allow a veteran to
keep a home.
To obtain help from a VA financial
counselor, Veterans can call VA toll-free at 1-877-827-3702.
Information about VA’s home loan guaranty
program can be obtained at www.homeloans.va.gov.
Since 1944, when home-loan
guaranties were offered with the original GI Bill,
VA has guarantied more than 18 million home loans
worth $911 billion. Last year, about 135,000 Veterans,
active-duty service members and survivors received
loans valued at nearly $24 billion.
About 2.3 million home loans
still in effect were purchased through VA’s
home-loan guaranty program, which makes home loans
more affordable for Veterans, active-duty members
and some surviving spouses by protecting lenders
from loss if the borrower fails to repay the loan.
More than 90 percent of VA-backed home loans were
given without a downpayment.
April data shows that foreclosures
are down more than 50 percent from the same months
in 2003. VA attributes this to prudent credit underwriting
standards, its robust supplemental loan servicing
program and VA financial loan counselors.
SOURCE:
US Department of Veterans Affair
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