Adding to the foreclosure and veteran mortgage crisis
Making the choice to dive into the dark and crooked world of banks and lenders, was a hard one. However, whats harder is being thrown head first into a serious financial and housing crisis and not understanding why, or how, or who, or what you can even do. If all you take away from this is one thing, let it be this....the laws are 100% written to protect lenders, banks, and mortgage providers while leaving the homeowner to fend for themselves. And if you are a veteran with a secure VA home loan, the idea in your head (as it was in mine) that when they say VA home loans have the lowest foreclosure rate, you honestly think that the VA will be your guiding hand and safety light when you get pushed into job loss, medical emergencies, accidents, etc., that alter your income and contribute to your increasing debts and inability to pay your mortgage. Because we are currently fighting our lender to get them to stop trying to make us homeless and work with us to reduce our payment to fit our income so we can keep our home and get back on track,
I have to really be careful with what i publicly say and disclose, but the last three years has taught me several things. First, you are in fact all on your own, because the VA does what a hired lawyer can do, try to get the lender to work with you to modify your loan and avoid foreclosure, but the VA lacks the steel grit to convince them of much and we struggled early on to get the assigned VA caseworker to return calls and emails much less act like he even gave a damn about our situation (and that was before we were behind but were trying to head off the very situation we are in now!). But contacting them right away, in addition to your bank or lender, should always be your first step! Keep records and recordings of everything (even when you think its not important) and never ever throw anything out. Second, as soon as you start to fall behind and your home is in default status, it suddenly seems like everyone is calling, stopping by, or sending you mail to try and "save your home," or "guarantee you'll keep your home" Never ever believe any of that, as again the laws currently protect the banks and lenders, and they almost always count on you just not wanting to go through the stress and emotional assault that fighting back dishes out to you on a regular basis. Third, you cannot possibly prepare yourself for the sleepless nights, crying, worrying, and trying to hide the nightmare of facing losing your home from your child/children. I knew it would be a battle, but not like this. I've said it before and will say it many times to come, we have been fighting the current and past lender for going on three years now and its a living hell. I never for a second thought it would take this long to get nowhere, and that we would feel as unimportant or worthless as we do.
Veterans have faced one hardship, battle, loss, and obstacle after another since our first wars. Whether its coming back to protests and being spit on, to waiting months for appointments you need to feel better or cope with mental issues, or suing a lender just to try and save your home and not have your family out on the streets. Addictions, disabilities, losses, divorces, births, job loss, periods of unemployment, mental illness, unforeseen accidents, diseases or illness, these are all things that all of us have to face and deal with, but when you're talking about individuals who have volunteered so many years of their life serving this country, defending its freedoms and people from foreign and domestic terrorists, you would think that we take care of them ad their families a little better than we have and currently do. Taking dozens of years to pass critical legislation, simply doesn't work. And yet, while they are well aware that veterans have no protection from lenders and predatory mortgage companies (many of which receive federal funding to HELP veterans that they are fortunate enough to hold veteran VA and FHA mortgages,) there are little to no current or pending bills that i can find that are designed to keep veterans housed...read that again..there are little to no programs, laws, or pending legislation that would protect veterans and their families and help them when life dishes out a healthy dose of hardships and losses.
A quick google search on lenders, banks, and mortgage companies who have been sued or are currently being sued by veterans (or really all homeowners in this country) provides you with indisputable reality that something isn't working. Something is wrong. We were put onto a three month hardship forbearance, that reduced our mortgage payment from just under 2k a month, to just a little over 15k a month. Its sad how excited we were that that payment, while still a bit high for our reduced income, was much easier to afford. With these "trial payments" the general practice is to reduce the payment to a lower and more affordable payment for a set time and then upon successful completion of those payments, you almost always get a loan modification. That is, unless you are us. I called in all three payments on time, days before they were even due, and in calling in the second payment was told rudely by the loan specialist who answered the phone, that they had no intention of ever modifying the loan, that they put us on the three payment plan so we could increase our income. To say i was angry and terrified, would be an understatement, especially since by that point we were two years behind in payments (neither lender did much but had no issues drawing out decisions for months at a time or claiming they didnt receive paperwork), and our credit by then was beyond damaged with bills piling up, and my disability application denied. So here you are, dealing with an income crisis that you warned the Lender before you were even behind in a single payment, bills piling up, health deteriorating and the answer they stand behind is just increase your income!?!?!?
To make things even worse, in that same phone conversation i just mentioned, the lender specialist also decided to throw in "this is why you buy houses you can afford. If we made it a point to reduce mortgage payments to fit incomes, we would be going bankrupt" Yes my friends, she said exactly those words, word for word and i just hung up the phone. So clearly the lender (which we are currently fighting btw) made it very clear they had no intention to work with us, that unless we increase our income we were going to lose the house, and there was nothing we could do. The problem is, while most homeowners give in and just vacate the house, my family has no place to go. Our home, our credit our future depends on fighting for our home and our lives. In fact, D (since i wont reveal private information while our case is ongoing) got an entry level government job on the same base we came here from (a two hour drive one way to work every day!) that unless he gets his security clearance, wont be able to take any one of the better paying jobs. The lender knows this, as we have told both the current and the previous lender, as long as the house is in default/foreclosure status anyone with a brain knows he wont get a security clearance (not in addition to the additional debts piling up because they come after the house and car!)
Here's my beef, as with all of the veteran families who i have spoken with now. The lack of resources and help to PREVENT foreclosures when unforeseen emergencies or loss of income gets thrown at them, directly contributes to and worsens the already tough and high stress hardships they/we are facing. Congress is aware of the problem, because I've already posted the email from D Feinstein saying they are aware and try to work on it, BUT its been three years since then and nothing has changed!! This isnt about me and my family, its about the problem as a whole, and contributing to the homeless crisis that most cities cannot successfully handle and solve fast enough is criminal!! Yet, the lenders, banks, and mortgage companies have all the money and laws stacked so perfectly that they always come out on top. To hear them tell you that "we are not in the habit of taking homes but keeping families in them" is just a disgusting lie. And still, nothing changes except the numbers of home on the VAs foreclosure sale list and the number of families out on the streets because this country and its "for profit" government doesnt care til it makes them have to see it, pay for it, or live through it themselves.
Every day, sometimes several times a day, I'll be presenting you facts, stats, stories, resources, personal case updates, but more importantly, show you the problems and suits that should be a giant red flag for congress and states to step in and arent. Here's an example:
Posted in Bloomberg.com on May 24, 2018 at 2am, Patrick Prashant Gopal wrote a story on "Getting Rich on Government Backed Mortgages." Yeah that title alone made it difficult to try and scroll and read through, but it doesnt hide that these lenders, investors, banks, and mortgage companies are in fact profiting off the defaulted loans big time. Here are the parts that made my stomach crawl...
I have to really be careful with what i publicly say and disclose, but the last three years has taught me several things. First, you are in fact all on your own, because the VA does what a hired lawyer can do, try to get the lender to work with you to modify your loan and avoid foreclosure, but the VA lacks the steel grit to convince them of much and we struggled early on to get the assigned VA caseworker to return calls and emails much less act like he even gave a damn about our situation (and that was before we were behind but were trying to head off the very situation we are in now!). But contacting them right away, in addition to your bank or lender, should always be your first step! Keep records and recordings of everything (even when you think its not important) and never ever throw anything out. Second, as soon as you start to fall behind and your home is in default status, it suddenly seems like everyone is calling, stopping by, or sending you mail to try and "save your home," or "guarantee you'll keep your home" Never ever believe any of that, as again the laws currently protect the banks and lenders, and they almost always count on you just not wanting to go through the stress and emotional assault that fighting back dishes out to you on a regular basis. Third, you cannot possibly prepare yourself for the sleepless nights, crying, worrying, and trying to hide the nightmare of facing losing your home from your child/children. I knew it would be a battle, but not like this. I've said it before and will say it many times to come, we have been fighting the current and past lender for going on three years now and its a living hell. I never for a second thought it would take this long to get nowhere, and that we would feel as unimportant or worthless as we do.
Veterans have faced one hardship, battle, loss, and obstacle after another since our first wars. Whether its coming back to protests and being spit on, to waiting months for appointments you need to feel better or cope with mental issues, or suing a lender just to try and save your home and not have your family out on the streets. Addictions, disabilities, losses, divorces, births, job loss, periods of unemployment, mental illness, unforeseen accidents, diseases or illness, these are all things that all of us have to face and deal with, but when you're talking about individuals who have volunteered so many years of their life serving this country, defending its freedoms and people from foreign and domestic terrorists, you would think that we take care of them ad their families a little better than we have and currently do. Taking dozens of years to pass critical legislation, simply doesn't work. And yet, while they are well aware that veterans have no protection from lenders and predatory mortgage companies (many of which receive federal funding to HELP veterans that they are fortunate enough to hold veteran VA and FHA mortgages,) there are little to no current or pending bills that i can find that are designed to keep veterans housed...read that again..there are little to no programs, laws, or pending legislation that would protect veterans and their families and help them when life dishes out a healthy dose of hardships and losses.
A quick google search on lenders, banks, and mortgage companies who have been sued or are currently being sued by veterans (or really all homeowners in this country) provides you with indisputable reality that something isn't working. Something is wrong. We were put onto a three month hardship forbearance, that reduced our mortgage payment from just under 2k a month, to just a little over 15k a month. Its sad how excited we were that that payment, while still a bit high for our reduced income, was much easier to afford. With these "trial payments" the general practice is to reduce the payment to a lower and more affordable payment for a set time and then upon successful completion of those payments, you almost always get a loan modification. That is, unless you are us. I called in all three payments on time, days before they were even due, and in calling in the second payment was told rudely by the loan specialist who answered the phone, that they had no intention of ever modifying the loan, that they put us on the three payment plan so we could increase our income. To say i was angry and terrified, would be an understatement, especially since by that point we were two years behind in payments (neither lender did much but had no issues drawing out decisions for months at a time or claiming they didnt receive paperwork), and our credit by then was beyond damaged with bills piling up, and my disability application denied. So here you are, dealing with an income crisis that you warned the Lender before you were even behind in a single payment, bills piling up, health deteriorating and the answer they stand behind is just increase your income!?!?!?
To make things even worse, in that same phone conversation i just mentioned, the lender specialist also decided to throw in "this is why you buy houses you can afford. If we made it a point to reduce mortgage payments to fit incomes, we would be going bankrupt" Yes my friends, she said exactly those words, word for word and i just hung up the phone. So clearly the lender (which we are currently fighting btw) made it very clear they had no intention to work with us, that unless we increase our income we were going to lose the house, and there was nothing we could do. The problem is, while most homeowners give in and just vacate the house, my family has no place to go. Our home, our credit our future depends on fighting for our home and our lives. In fact, D (since i wont reveal private information while our case is ongoing) got an entry level government job on the same base we came here from (a two hour drive one way to work every day!) that unless he gets his security clearance, wont be able to take any one of the better paying jobs. The lender knows this, as we have told both the current and the previous lender, as long as the house is in default/foreclosure status anyone with a brain knows he wont get a security clearance (not in addition to the additional debts piling up because they come after the house and car!)
Here's my beef, as with all of the veteran families who i have spoken with now. The lack of resources and help to PREVENT foreclosures when unforeseen emergencies or loss of income gets thrown at them, directly contributes to and worsens the already tough and high stress hardships they/we are facing. Congress is aware of the problem, because I've already posted the email from D Feinstein saying they are aware and try to work on it, BUT its been three years since then and nothing has changed!! This isnt about me and my family, its about the problem as a whole, and contributing to the homeless crisis that most cities cannot successfully handle and solve fast enough is criminal!! Yet, the lenders, banks, and mortgage companies have all the money and laws stacked so perfectly that they always come out on top. To hear them tell you that "we are not in the habit of taking homes but keeping families in them" is just a disgusting lie. And still, nothing changes except the numbers of home on the VAs foreclosure sale list and the number of families out on the streets because this country and its "for profit" government doesnt care til it makes them have to see it, pay for it, or live through it themselves.
Every day, sometimes several times a day, I'll be presenting you facts, stats, stories, resources, personal case updates, but more importantly, show you the problems and suits that should be a giant red flag for congress and states to step in and arent. Here's an example:
Posted in Bloomberg.com on May 24, 2018 at 2am, Patrick Prashant Gopal wrote a story on "Getting Rich on Government Backed Mortgages." Yeah that title alone made it difficult to try and scroll and read through, but it doesnt hide that these lenders, investors, banks, and mortgage companies are in fact profiting off the defaulted loans big time. Here are the parts that made my stomach crawl...
"In civil fraud complaints, the Department of justice has accused many companies, including Quicken and Freedom Mortgage, of improperly underwriting FHA loans and then filing claims for government insurance after borrowers defaulted. In 2016, Freedom Mortgage settled for 113 million, without admitting liability. Quicken is fighting the Justice Department in court."
The article then goes on to say.."There are other worrisome signs, Even in a strong economy, recent FHA loans are souring FASTER than those made years ago when the industry had stricter credit standards." At the time 9% of the mortgages were 30 days or more past due, which was well below the 14 % in 2009. But even the FHA was concerned, as borrowers are spending 43 percent of their income on debt payments, the highest recorded level in two decades!! 43% of their income!!! Considering that most borrowers are literally living paycheck to paycheck, an health crisis, accident, or job loss would result in an immediate default. That my friends is exactly how my family found themselves in the nightmare life we are in today. D lost his job without any warning, and because of his age and experience, because he wasnt young and fit the ideal that every single interview he went on (and he took so many that we kept detailed records of) he was passed over each and every time, resulting in months and months of unemployment and increasing debts that we could not and cannot keep up with. If you want to read the article in entirety, here's the link : Getting rich off government backed loans
Now that was back in 2018, and not much has changed. With the VA loosening the guidelines on home buying, removing the cap on how much home you can get approved for, you dont have to be a rocket scientist to see that its not because they want veterans to live in plush homes. You get so wrapped up in buying your first home, in the excitement of owning your first home, that you dont imagine for a second that a death, accident, medical crisis, or job loss will have you fighting to keep the roof over your head. For us, we had no clue and didnt get the time to find solutions to avoid being in this situation in the first place, but here we are. Writing about our struggle and case, sharing it, may not help save our home, but maybe it can inspire others to join us in raising awareness to this issue, and maybe spark a fire that has congress standing up for and protecting veterans and their families, rather than helping to take homes and make people rich.
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