Veterans’ American Dream Delayed by Real Estate Settlement
Army Reserve Veteran Faced with Homebuying Hurdle
Lucas Reilly, a 15-year Army reserve veteran, served in Afghanistan and Iraq, but now he’s facing another battle: buying a home. The Department of Veterans Affairs (VA) home loan guarantee program, which allowed him to buy a home with no down payment, has been rendered useless due to a recent real estate settlement.
"I’ve always wanted to own a home. But now it’s challenging," Reilly said.
The settlement, reached in response to a lawsuit against realtors for charging higher commissions to home sellers, has prohibited veterans from paying any compensation, commissions, or fees to real estate agents. This makes it difficult for veterans like Reilly to buy a home, as they are not allowed to pay the agent’s commission.
Realtor’s Perspective
Gustavo Dias, a veteran and realtor, helps veterans nationwide find homes. He understands the impact of the settlement on his fellow service members.
"Veteran buyers are prohibited from paying any compensation, commissions, or fees. Now, if the buyers are paying compensation, and the VA has a policy that says veterans cannot pay compensation, we have a conflict," Dias said.
A Growing Concern
This settlement is not just a local issue; it affects veterans nationwide. The real estate commission changes will go into effect in July, and the VA is working with the Department of Justice to ensure that veterans are not disadvantaged. However, the VA has not ruled out the possibility of changing the rule.
A Call to Action
Gustavo Dias is calling on lawmakers to help veterans overcome this hurdle. "I’m calling on our governor, I’m calling on anyone who’s willing to listen, help the veterans out. To hear another veteran just giving up hope on being able to buy a home and having to have a long-term rental, it’s just heart-wrenching."
Congressional Support
Representative Debbie Wasserman Schultz, chair of the Appropriations Subcommittee on Military Construction and Veterans Affairs, is working to find a solution. "I’ll fight to ensure that all pathways that can lead to owning a home stay open for veterans and anyone who aspires to this American dream."
Conclusion
Veterans who have sacrificed so much for their country deserve to have the opportunity to achieve the American dream of homeownership. The real estate settlement has created an unnecessary hurdle, but with the support of lawmakers and realtors, a solution can be found.
FAQs
Q: What is the real estate settlement?
A: The real estate settlement is a landmark agreement between realtors and the Department of Veterans Affairs, prohibiting veterans from paying any compensation, commissions, or fees to real estate agents.
Q: How does this affect veterans’ ability to buy a home?
A: The settlement makes it difficult for veterans to buy a home, as they are not allowed to pay the agent’s commission, which is a crucial part of the homebuying process.
Q: What is being done to address this issue?
A: The Department of Veterans Affairs is working with the Department of Justice to ensure that veterans are not disadvantaged, and some lawmakers are calling for a change to the rule.
