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Why Are Vets And Active-Duty Soldiers Losing Their Homes?

Veterans and active-duty soldiers are facing foreclosure at an alarming rate in some parts of Texas. Further north in Bell County, more than 65 percent of new foreclosures last year involved homes owned by either current or former members of the military.

While it is not clear if the rates are equally high statewide, the question is worth asking: why are servicemembers past and present having their homes taken away?

 

The Benefits Of VA Home Loans Could Also Be A Trap

Many current and former military personnel qualify for Veterans Affairs home loans. On the surface, these loans have many benefits. Not only are they federally guaranteed, they can allow the borrower to get a home with no money down.

Unfortunately, that is often where the problems begin, according to an article from the Killeen Daily Herald. The borrower puts zero dollars down and pays no closing fees. The borrower instead pays a funding fee, but that can be financed into the loan. As one analyst points out, this essentially puts the homeowner underwater on the very first day, at least by a few thousand dollars. This fact coupled with the reality that financial situations can change for servicemembers, and the stage is set for challenges.

What Can Servicemembers Do?

If you are a current or former member of the military who is considering taking advantage of a VA home loan, it is important to understand the potential risks as well as the benefits.

If you have a VA home loan and have been threatened with foreclosure, be aware that you do not have to give up without a fight. There may be any number of foreclosure defense options available that could help you stay in your home.

 

 

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