House Bill 1815 will provide a one-time bailout for veteran homeowners who are struggling to make their mortgage payments and are in a delinquent status, facing foreclosure or a short sale of their property. The payment covered by the VA program will be placed into a secondary mortgage in a forbearance status while the remainder of the primary mortgage is paid off. The remainder will then be paid off following the closure of the primary mortgage. If implemented, this bill will help veterans maintain homeownership and financial stability, enhance the effectiveness of the VA’s housing assistance, and contribute to overall market stability by reducing foreclosure rates. This legislation was introduced in response to the shutdown of the previous Veterans Affairs Servicing Purchase (VASP) program.  

This vital piece of legislation will help those who are unable to stay current with their VA Home Loan mortgages due to job loss or family emergencies. For those who have become delinquent on their mortgages, rather than lose their homes due to foreclosure or a short sale, the VA can step in and offer temporary relief on a one–time basis.  

By allowing the VA to pay the lender of delinquent loans and establishing new loans based on the delinquencies in a forbearance status until the first loan is completely paid, the bill helps prevent foreclosures. It ensures veterans have clear options for assistance. This legislation will enhance the VA Home Loan Guaranty Program by protecting veterans from losing their homes, improving financial stability, and reducing foreclosure rates, ultimately benefiting both veterans and the economy.  

The American Legion calls on the Senate to act swiftly and pass this bipartisan legislation to support our veterans in their time of need, allowing them to maintain their dignity and a piece of the American Dream.