The Housing and Economic Recovery Act of 2008 has a few changes in it that are intended to help Veterans.
For reservists and members of the National Guard who are called to active duty, there are some protections having to do with foreclosures and interest rates. If a service member had a mortgage before entering active duty, a lender can't start foreclosure until nine months after the service member returns from active duty -- whereas before the time-frame was 90 days.
Regarding interest rates -- when someone with a mortgage is called up to active duty, the interest rates on all previously existing debt is capped at 6% and the 6% cap extends until one year after the service member returns from active duty.
Other provisions in the bill include increases the VA loan guarantee amount, so that veterans have additional homeownership opportunities; an increase in benefits paid to veterans with disabilities such as blindness for the purpose of adapting their housing; provide a moving benefit to servicemen and woman who are forced to move out of rental housing because the owner of the housing was foreclosed on; provide that veterans benefits received in a lump sum are treated the same for the purposes of eligibility for housing assistance as monthly benefits; and to allow the Veterans Administration to provide for improvements and structural alterations to homes of veterans with service-connected disabilities.
Lastly, the Defense Department will provide foreclosure-preventioncounseling upon request to service members who are returning fromactive duty.
You can read a complete summary of the bill here.
