Iraq war veteran Kevin Conlon faces a tough battle to keep his home in upstate New York. After serving two combat tours in Iraq, he and his wife, Jenny, relied on a VA home loan to buy their house. This loan allowed them to purchase a home without a down payment, something they could not have done otherwise. For 12 years, they have made this house their home, raising their child and building a life together.
However, a recent blunder by the Department of Veterans Affairs (VA) has put them and many other veterans in jeopardy. In October 2022, the VA abruptly ended a key part of its mortgage forbearance program. This program was designed to help homeowners who were struggling financially by allowing them to pause their mortgage payments without facing foreclosure. When the VA pulled the plug on this program, thousands of veterans suddenly found themselves unable to catch up on their payments, especially as mortgage rates soared to around 7%.
Kevin and Jenny Conlon are among the nearly 40,000 veterans who now risk losing their homes. They feel trapped, with no clear path to resolve their financial struggles. "Without the VA loan, there was no way that we could have afforded to buy a house," Jenny said. Now, they worry about what will happen if they cannot get back on track with their mortgage.
The VA has introduced a new loan program aimed at helping these veterans. So far, about 15,000 veterans have benefited from this new initiative, called the VA Servicing Purchase program (VASP). However, some lawmakers are pushing to limit or even eliminate this program. Critics argue that doing so would only lead to more foreclosures among veterans who have already sacrificed so much for their country.
At a recent hearing, some Republicans expressed concerns about the new program. Wisconsin Representative Derrick Van Orden criticized it, saying it shifts the burden of bad loans onto taxpayers. He has proposed bills that would cap the number of loans the VASP program can handle, which many experts warn could cripple the initiative and leave more veterans vulnerable to foreclosure.
Kevin Conlon, who has struggled with PTSD since his time in Iraq, believes that the VASP program is essential for his family’s future. He is hopeful that Congress will see the importance of this program before it is too late. "You’re talking about getting rid of something that would keep me and my family in a home that we love," he said.
As the debate continues, veterans like the Conlons are left waiting and worrying about their homes and futures. The outcome of this situation could have lasting effects on many families who have already faced significant challenges.