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Senator Seeks Provision in Foreclosure Bill to Aid Veterans
By kevin | April 4, 2008
While the Senate is expected to continue to discuss the specific provisions of the proposed Foreclosure Prevention Act through most of Thursday, Senator Norm Coleman of Minnesota has proposed an interesting new amendment that would seek to curb VA foreclosures and help veterans keep their properties.
Currently, the law provides veterans with an extra 3 months to work out their default troubles and avoid a foreclosure. Coleman hopes to extend that period to nine months, giving them more of a chance to catch up on payments or sell off their property before a foreclosure occurs. The department of Veteran Affairs pays out millions of dollars to lenders every year to provide VA loans to veterans, so that they can get assistance in buying a home. But when VA loans slip into default, the result is VA foreclosures, and there have been a lot of them coming onto the market as the foreclosure boom has picked up speed.
This is just one of the many issues being discusses on the Senate floor, but could result in a drop off in VA foreclosures if it is passed, and it is something worth watching.
Topics: VA Foreclosures |