VA cancels bailout program

[Tawfik Ahdab]

“
Kasperowicz said the VA decided to end the program because the agency is not set up or intended to be a mortgage loan restructuring service.

Under VASP, delinquent mortgages are restructured at an interest rate of 2.5%, which is well below the average market rate. The national average this week for a 30-year, fixed-rate mortgage is slightly more than 6%, according to BankRate, a consumer financial services company that surveys major lenders weekly.”

VA to shutter home loan bailout program for veterans

The Department of Veterans Affairs will end a controversial mortgage bailout program that provides “last resort” assistance to veterans facing foreclosure and holding VA-backed loans, the agency announced.

www.stripes.com

 

[Digger88]

A little better than 6




A 4%ish default rate, an 11 month old program that spent $5.5 billion already why not have the lenders restructure their loans like they did after 2008

 

[Terrel L. Shields]

Six percent rates are great. Far better than most of my 75 years. The problem is not interest rates. The problem is property is too expensive for the average person to buy. Incomes simply have not kept up with the rapid increase in home prices especially during the faux Covid crisis.

 

[Tom D]

I thought i read that 50,000 VA homes were in trouble.

 

[ucbruin]

A little better than 6

View attachment 98803


A 4%ish default rate, an 11 month old program that spent $5.5 billion already why not have the lenders restructure their loans like they did after 2008

View attachment 98802

I was reading the AF in the '00s....
But I have to guess FORUMITES were against any government intervention....

 

[RSW]

I thought i read that 50,000 VA homes were in trouble.

We have seen an increase in liquidation appraisals in the last 3 months.

 

[Zoe]

I thought i read that 50,000 VA homes were in trouble.

There is no telling how much shadow inventory is out there across the mortgage industry. I think car loans and credit card accounts are near high delinquency rates. No telling how much shadow inventory Gses hold.

If what you read is true, then that could be minor to gses and private lenders.

 

[Zoe]

I think I have had 6 liquidation assignments for VA in last 6 months. The tide is changing.

I live near a military base. If it is increasing for veterans, it is increasing across the board exponentially.

You have to be special to get a VA loan.

VA is very minor in the big picture of home mortgages.

 

[Zoe]

There are not that many VA mortgages in the big picture and they just don't default very often. I hate liquidation appraisals for veterans and I try to let them know that if I can. I still have a job to do.

Just like they did to protect America.

 

[Zoe]

The tide is changing a little. I think I had 7 in the 12 months prior to 6 months ago. Like from August 2023 to August 2024 I had 7. From August 2024 to current I have had 6.

Let me make it clear VA does anything possible within their reigns to keep the veteran from losing their home.

I am not in that picture. I appraise real property rights for the VA and the lender.

I do my best to explain that to the veteran if they will talk to me.

I hate liquidation assignments for a veteran.

I have a job to do. Doesn't matter. I appraise real property rights for my client(s).