When discussing the foreclosure crisis among veteran homeowners, especially during the
COVID-19 pandemic, there are several societal and group-level narratives that often place
blame on veterans, while ignoring systemic issues such as how VA loans were treated
differently and how lenders sometimes failed to offer veterans the full range of available options.
Here are some excuses or narratives that have been used to deflect accountability:
1. Personal Responsibility and Financial Mismanagement
● Excuse: Some argue that veterans, like all homeowners, should take full responsibility
for their financial decisions, implying that the fault lies with the individual for not
managing their finances correctly.
● Reality: This ignores the unique challenges veterans face, especially when dealing with
VA loans during the pandemic. Many veterans were either unaware of the full range of
assistance available or were not properly informed by their lenders about their rights.
Additionally, the economic strain caused by the pandemic, including job loss and health
issues, disproportionately affected veterans, making it harder to meet financial
obligations.
2. Veterans Are Over-privileged or "Special Treatment"
● Excuse: There's a narrative that veterans have too many benefits (such as VA loans)
and are being "over-accommodated" compared to other groups.
● Reality: VA loans were intended to help veterans secure homeownership, and while
they offer advantages like no down payment and no private mortgage insurance, these
benefits should not be seen as "extra." In fact, veterans often face hurdles that civilian
homeowners don’t, such as accessing information or navigating the unique stipulations
of the VA loan program, which was sometimes mishandled during the pandemic.
3. Lack of Communication or Awareness
● Excuse: It's often suggested that veterans simply weren't aware of their options for
mortgage relief during the pandemic.
● Reality: This is a major oversimplification. Many veterans were not fully informed about
the relief options available to them. Lenders failed to proactively inform them about
forbearance, loan modifications, or other VA-specific relief measures that could have
prevented foreclosure. During the pandemic, this lack of transparency and outreach left
many veterans vulnerable.
4. Veterans Are Just Not Seeking Help
● Excuse: There’s an implication that veterans failed to reach out for help when they
should have, and therefore deserve the foreclosure.
● Reality: The real issue here is that many veterans may not have known that they even
had options. Additionally, navigating a foreclosure process can be complicated,
especially if veterans are already dealing with the stress and trauma of military service,
or if they lack support networks to guide them.
5. Over-Reliance on Government Aid
● Excuse: Some argue that veterans and service members should rely on government
assistance, and therefore if they fail to manage their loan payments, it’s due to
over-reliance on these programs.
● Reality: While government programs like the VA home loan are essential, they are not
always enough to safeguard against the unique challenges faced by veterans. When
lenders fail to provide accurate guidance or withhold important information regarding
foreclosure alternatives (like forbearance or loan modification), veterans have less
opportunity to make informed decisions.
6. Veterans Aren't "Taking Advantage" of the Forbearance Programs
● Excuse: The perception that veterans should have known about and immediately taken
advantage of the mortgage forbearance options.
● Reality: While forbearance was made available to homeowners during the pandemic, it
wasn’t always clear or accessible for VA loan holders. In many cases, VA loan holders
were not given clear directions about forbearance, which was a separate process from
the broader relief available to other loan types. Moreover, veterans were sometimes
pushed into "temporary solutions" that didn’t effectively solve long-term financial
struggles, making foreclosure more likely down the line.
7. Stigma Against Veterans Facing Financial Hardships
● Excuse: There's sometimes a societal stigma that veterans should be resilient, and
those who experience financial hardship are not "living up to the expectations" placed on
them.
● Reality: This is an unfair stereotype. Veterans may face physical and mental health
challenges (like PTSD), which can make it more difficult to manage financial
responsibilities. The stress of facing foreclosure, combined with the social stigma that
veterans should be "tough," can prevent them from seeking help or advocating for their
rights.
8. Blame Placed on the "Market" or External Factors
● Excuse: Sometimes groups and policymakers argue that foreclosures are simply a
result of "market conditions" or external factors, which are beyond the control of both
lenders and borrowers.
● Reality: While the housing market was impacted by the pandemic, the failure to provide
adequate support or flexible solutions for veterans within the housing market is a
systemic issue. The treatment of VA loans was inconsistent compared to conventional
loans, and the inability of lenders to effectively communicate relief options created
disparities in how veterans were supported.
9. Veterans Don’t Need "Extra" Help Beyond What Was Offered
● Excuse: There’s sometimes a notion that VA loan programs already offer significant
benefits, so additional assistance during the pandemic is unnecessary.
● Reality: VA loan benefits may seem generous, but the pandemic presented a unique set
of challenges. Without proper guidance on how to use these benefits, veterans were left
to struggle with a complex and confusing process, particularly when lenders did not offer
them full information about what could prevent foreclosure.
These narratives, unfortunately, often overshadow the real issues at play, which include the
failures of the system, a lack of outreach from lenders, and the unique challenges veterans face.
It's important to emphasize the need for systemic reforms to ensure that veterans are supported
and given the resources they need to stay in their homes, especially during crises like the
COVID-19 pandemic.
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