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VA Home Loan Protections

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Is it legal for my bank to sell my house for non-payment if I was hospitalized in a dual-diagnosis (drug and mental health) treatment facility?  I was in a rehab facility for 4 months during which time the bank foreclosed on my house and sold it without my consent because I was unable to make the payments.  I contacted them the second week that I was in the facility and let them know that I was in the facility but I was limited on the amount of phone calls I could make and I only called the one time.  When I got out of the facility the bank had repossessed (legally) and sold my house.  The loan was a VA loan which I thought had some protection for this sort of issue as many veterans suffer from mental health issues.  I also assumed (incorrectly I now believe) that the Americans with Disabilities Act (ADA) would have allowed for some protections against this sort of thing.  Could they have done this if I was hospitalized in a coma or with some other health condition?

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The Americans with Disabilities Act (ADA) does not have anything to do with mortgage loans and would not have helped you in any way to avoid the foreclosure. Nor does the law prohibit a VA lender from foreclosing when payments are not being made for whatever reason.


The VA offers some help to veterans facing foreclosure, but you needed to contact the VA yourself to see what it could do for you. If you have not already, contact the VA to see if there are any services it can provide you to help with your current situation.


Some VA lenders will provide help to avoid foreclosure, too, like restructuring the loan, forebearance, etc., but you needed to address that with the lender. If all you did was call once and tell the lender you were in a treatment facility that wouldn't help much in alerting the lender that you may need help with payments while your were in the treatment facility.


Ultimately, it is up to you to ensure your payments get made and to seek out VA or lender assistance when you couldn't make the payments. Those organizations are not going to step in to help unless you've contacted them to get that help. 

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