Foreclosure Protection for Veterans
A subcommittee of the House of Representatives agreed on April 23rd to amend the veteran’s home loan program and offer foreclosure protection. The amendment will lower loan fees, stall foreclosures, and increase availability to government supported mortgages to United States veterans.
Two separate bills were passed, one catering mostly to National Guard members and affording them more protection against foreclosure. Representatives supporting the bill intend to accomplish this by increasing the maximum available loan amounts by a considerable amount (a 50% increase to $625,500 from $417,000), setting a flat rate of 1% for every loan, and allowing more leniency in refinancing existing loans with loans supported by the Veteran’s Affairs Department.
The other bill, HR 4883, would prevent foreclosure on properties that are owned by soldiers for one year after they are released from active duty. This is an expansion from the ninety days for which they are protected after active duty currently.
The purpose of the bills is to make the “American dream” of home ownership a reality for many servicepeople, who and getting the short end of the stick in today’s economy.
