A VETERAN has not qualified for new assistance after almost losing his home due to the removal of a program made to help those struggling financially during the pandemic.
Edmund Garcia, a combat veteran who served in Iraq, is one of thousands of veterans who were threatened with foreclosure and left in the dust by the Department of Veterans Affairs.
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“Almost $23,000? How am I gonna come up with that?” Edmund Garcia asked NPR earlier this year.
He bought a house in Rosharon, Texas, with a VA home loan and when his wife lost her job during the pandemic, his mortgage company offered him a forbearance.
Garcia and millions of Americans took advantage of COVID mortgage forbearance, which allowed homeowners to skip payments.
After the pandemic, Congress established the Partial Claim Payment (PCP) program to assist those who are experiencing financial difficulties.
However, in October 2022, the Department of Veterans Affairs terminated the program.
After months of waiting for some relief, the VA announced its new program on Wednesday that aims to help veterans like Garcia.
The only flaw is that many people who were involved in costly modified loans won’t qualify for this new help.
LOAN DISASTER
After the program was dissolved, Garcia was informed that if he couldn’t pay all the missed payments at once, he would have to accept a loan modification that would result in substantially higher monthly payments.
His old mortgage rate was 2.4% and the offer would increase it to 7.1% with payments $700 a month more expensive.
If he didn’t accept the loan, his home would be foreclosed on.
“So this is my dilemma,” Garcia said he told the mortgage representative on the phone, according to NPR.
“You guys have put a financial gun to my head saying, sign this or else.”
Now, any veterans who succumbed to the pressure of a higher-cost loan modification may not be eligible for the new plan.
‘A LITTLE SHOCKED’
Veterans were unaware that there would be qualifications for the new plan.
“I was a little shocked to hear that I would have to qualify for this program,” Garcia told NPR this week.
However, Garcia never actually accepted the more costly loan modification, meaning he should qualify for the new program.
You guys have put a financial gun to my head saying, sign this or else.”
Edmund Garcia
Though this is the case, under the rules, he’ll probably be put into a 40-year mortgage, which may be happening to other veterans as well.
“At the end, I’ll be 82,” Garcia said.
“This would be a huge relief for my family and it feels like it’s within arm’s grasp.”
The VA suggests that borrowers work with their mortgage company and contact a VA loan technician for further assistance.
The U.S. Sun previously reported on other veterans who were threatened with foreclosure, including a Marine Corps vet who thought he was going to lose his home while he was at the hospital recovering from a leg amputation.
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