By Joseph E. Seagle, Esq.

👋 Happy Friday! Monday is Memorial Day, the nation's foremost annual day to mourn and honor its deceased service men and women. Originally called Decoration Day, it was formalized by a "Memorial Day Order" issued by Grand Army of the Republic Commander-in-Chief John A. Logan in 1868. To learn more about Memorial Day, visit the National Cemetery Administration’s website.

1 big thing: More Vets are sweating foreclosure

📌 The Big Picture: The Department of Veterans Affairs (VA) has terminated the Veterans Affairs Servicing Purchase (VASP) program as of May 1, 2025, leaving nearly 90,000 veterans with seriously delinquent VA-backed mortgages at heightened risk of foreclosure. 

🕰️ Background: Established in 1944 under the Servicemen’s Readjustment Act (GI Bill), the VA loan program was designed to assist World War II veterans in achieving homeownership. Over the decades, it has evolved to offer benefits like zero down payments and competitive interest rates, aiding millions of veterans in securing homes. 

⚠️ What’s Happening: The VASP program, introduced during the Biden administration, allowed the VA to purchase delinquent loans and offer veterans new, affordable mortgages. Its termination, attributed to concerns over taxpayer risk and lack of congressional authorization, has sparked criticism from Republican Congressmen who warn of a looming foreclosure crisis among veterans. 

Congressional Republicans on the VA Committee say they’re working on a “partial claim” program like the one used in troubled FHA loans, and this will replace VASP. But — in the meantime — tens of thousands of veterans are in danger of losing their homes.

Yes but when NPR investigated the closure of the program, the VA halted foreclosures for a year to give Congress time to replace VASP.

🏠 Impact on Real Estate Professionals:

• Realtors & Mortgage Brokers: An anticipated increase in VA loan foreclosures may lead to a surge in refinancing applications and property listings, particularly in markets with high veteran populations (see Jacksonville, Pensacola, Tampa, Brevard County …). This could present opportunities for clients seeking affordable homes, but may also require sensitivity to the circumstances of displaced veterans.

• Real Estate Investors: The influx of foreclosed properties could offer investment opportunities at reduced prices. However, ethical considerations and potential community backlash should be weighed when acquiring homes from vulnerable populations, especially in light of current high-profile litigation in Arizona challenging the legality of taking such VA mortgages subject-to.

• Title Insurance Agents: A rise in foreclosure transactions may increase demand for title services, necessitating thorough due diligence to navigate potential legal complexities associated with distressed properties, and subject-to transactions involving VA loans may draw the attention of Florida regulators and class-action lawyers.

📈 By the Numbers:

• Approximately 90,000 VA-backed loans are seriously delinquent. 

• Over 20,000 veterans previously benefited from the VASP program. 

• Foreclosure rates among VA loans have surged to a five-year high following the program’s termination. 

🔮 What’s next: The real estate industry should prepare for the ripple effects of increased veteran foreclosures, including shifts in housing demand, property values, and community dynamics. Stakeholders are encouraged to engage with policymakers and veteran support organizations to advocate for solutions that balance market opportunities with social responsibility.

2. 🏛️ Texas Bill Targets Memoranda in Real Estate Wholesaling

🧠 The Big Picture: Texas House Bill 4063 aims to clamp down on the misuse of a memorandum of contract in real estate deals, a common practice among wholesalers to assert control over properties without holding title. The bill prohibits filing a memorandum unless the contract expressly permits it and includes specific statutory language — backed by penalties for violations.

📜 Why It Matters: For many real estate wholesalers, particularly in states like Florida, where wholesaling thrives, the memorandum serves as a tool to cloud title and block sellers from backing out of contracts. A law like HB 4063, if passed in Texas and mirrored in Florida, could fundamentally alter how wholesalers protect their contractual interests.

📌 Details of HB 4063:

• A memorandum of contract must include exact statutory wording warning that it doesn’t create a lien.

• The underlying contract must explicitly authorize the filing of a memorandum.

• Penalties include statutory damages of $1,000 per day for wrongful filings, plus actual damages and attorney fees.

• Courts can issue orders to remove improper filings from public records.

📉 If Florida Follows Suit and enacts a similar law, real estate wholesalers would lose a key enforcement mechanism. Currently, recording a memorandum gives wholesalers leverage, often dissuading sellers from breaching assignment contracts. Removing this option or limiting it to narrowly drafted contracts would shift negotiating power back to property owners.

For investors, the change would:

• Raise compliance stakes: Sloppy or aggressive filings could trigger costly penalties.

• Force contract revisions: Standard wholesale agreements would need clear language permitting a memorandum.

• Increase litigation risks: Sellers and end buyers could challenge improper filings more easily.

🔎 Between the Lines: This legislation reflects a growing scrutiny of wholesaling tactics, especially those perceived as deceptive or abusive. Regulators appear increasingly willing to step in where market practices disrupt seller rights or title clarity.

The Texas Land Title Association proposed and is lobbying for the bill. TLTA is extremely powerful in Texas, just as FLTA is in Florida. When such industry associations recognize a problem and write legislation to fix it, legislators usually listen and take action.

💬 Our Take: Florida wholesalers should monitor this bill closely. It may be a preview of regulatory trends that could spread and reshape real estate deal structures in high-volume wholesale states.

This week on Trust This: Ask Joe Anything, I explain the “Green, Yellow, and Red lights” of asset protection planning timing.

 Listen in or watch on your favorite streaming platform.

3. Catch up fast

1. What does it mean when the country’s FICO score drops? Bloomberg (gift link)

2. Economist Paul Krugman games out what it would mean if the U.S. economy experiences another financial crisis because the world loses faith in our credit. Substack

3. Home sellers are setting “aspirational” prices while buyers have different ideas. Yahoo Finance

4. Florida passes law to allow e-mailed eviction notices to tenants. Evict.com

5. Florida’s pandemic housing boom is over. Heading toward another crash? Tampa Bay Times

6. International tourism to the U.S. drops 61%, and expected to go lower. Travel and Tour World

7. U.S. Treasury will no longer mint pennies BBC News

8. Florida couple’s eviction of a tenant turns into a $366,000 code enforcement violation lawsuit with the city. MoneyWise

9. April’s home sales dropped to the slowest pace for that month since 2009. CNBC

10. Ending the Fannie/Freddie conservatorship in the cards? MPAMag

4. Closing Thought: The Grit Behind the Uniform — How Vets Turn Military Habits Into Real Estate Tenacity

In the world of real estate investing—a battlefield of its own, with market volatility, deal fallout, and regulatory landmines—the difference between failure and success often comes down to one trait: grit.

Many veterans who transition into real estate bring with them a deep well of grit, cultivated not just in combat but in the daily rigors of military life. What separates them isn’t just their courage under fire. It’s their unwavering commitment to routine.

In the service, habits aren’t optional. They’re ingrained—wake at 0500, polish boots, maintain order, complete drills, march 10 miles with a 30-pound rucksack on your back. This structure breeds more than discipline; it builds mental calluses that protect against the paralysis of uncertainty and fear. When a deal collapses, a contractor walks off-site, or a tenant trashes a unit, veterans don’t freeze. They fall back on their routines—reviewing their systems, reassessing the mission, and taking the next step forward.

This habit-driven grit is their secret weapon. It transforms setbacks into data points, delays into opportunities to recalibrate. For veterans, the real estate landscape, however unpredictable, becomes another mission with objectives, timelines, and a path to execution.

As an attorney, I tell investors: adopt the mindset of a veteran:

• Build routines that center your day.

• Measure progress in actions, not just outcomes.

• Create systems that persist when motivation fades.

• Cultivate habits that bring you back to the mission when knocked down.

Because grit isn’t just about toughness—it’s about staying on task, day after day, especially when results lag behind effort.

Veterans don’t succeed in real estate because they’ve avoided failure. They succeed because they’ve learned to navigate it with structure and resolve. And that’s a lesson every investor can apply — military background or not.

Go Deeper: Trust This podcast interviews — Veterans John Chin, Bernadeau Charles, Robert Vazquez, and Ricardo Rosales, just to name a few

We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.

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