Go to Iraq, Lose your House

Foreclosures of homes in military towns are almost four times as high as the rest of the population, according to a story by Bloomberg.com.

In the midst of the worst surge in mortgage defaults in seven decades, foreclosures in U.S. towns where soldiers live are increasing at a pace almost four times the national average, according to data compiled by research firm RealtyTrac Inc. in Irvine, California. As military families like the VerSteeghs signed up for the initial lower rates and easier terms of subprime mortgages, the number of people taking out Veterans Administration loans fell to the lowest in at least 12 years.

``We've never faced a situation like this, not in the Vietnam War, World War II, or the Korean War, where so many military are in danger of losing their homes,'' said Paul Sullivan, executive director of Veterans for Common Sense, a Washington-based advocacy group started in 2002 by Iraq and Afghanistan War veterans. ``No one asked them for their credit score when we asked them to fight for us.''

The article is based on foreclosure statistics in areas surrounding large military bases., such as Columbia, S.C., home to Fort Jackson, which has seen a 492 percent increase in homes in some stage of foreclosure.

It also quotes a returning veteran about to lose her home:

``We fought for our country, and now we have to fight to save our homes,'' said Kelly. ``After living with the stench of death in Iraq, it seems like we shouldn't have to face problems like this when we come back.''

Veterans Secretary James Peake denies there is a problem:

``My data comes from those that have VA loans, and we haven't seen, as I understand it, a big jump'' in foreclosures, said James Peake, the Secretary of Veterans Affairs in Washington, in a May 20 interview.

That might be because the foreclosure rate for VA loans was only 1.12 percent. Mr. Peake might want to take his head out of his ass and take the time to research private mortgage loans to military members.

Lenders aren't required to keep records on the status of non-government loans to military members or veterans, said Mike Frueh, the VA's assistant director for loan management in Washington. Judging solely by data on VA mortgages, active military and veterans in the current housing slump are getting into trouble with their home loans at a pace only slightly above the civilian rate, he said.

Oh, I see -- they aren't required to look into private lending to the military, so no problem exists as far as they are concerned.

There actually is a law that provides some relief from foreclosure, but apparently it's one of those double-secret things that nobody knows about.

The law gives military personnel the right to have interest rates temporarily lowered to 6 percent on loans incurred prior to entering active service. To apply for protection, they have to send copies of their military orders to their mortgage servicing companies, even if they are on the front lines. The VerSteeghs in Iowa didn't know about that option, said Kathleen.

Before leaving for Iraq, the 43-year-old VerSteegh called the Bush Administration's Hope Now program created to help people facing foreclosure, his wife said.

``We got no hope from Hope,'' and no information about the potential interest-rate deduction, according to Kathleen VerSteegh.

That pretty much sums it up -- no hope from the Bush Administration. So maybe they should start a new program -- they could call it Go To Iraq, Lose Your House.