Veterans Lose Homes as VA Relief Ends and Housing Plans Stall
Thousands of veterans are losing their homes as the VA ended its foreclosure prevention program in May 2025, leading to over 10,000 foreclosures and nearly 90,000 VA loans becoming seriously delinquent. Despite this, the VA maintains that foreclosure rates remain in line with historical levels and that its programs continue to prevent widespread home losses. A new law signed in July 2025 aims to help veterans avoid foreclosure by allowing the VA to cover missed payments without forcing refinancing at higher rates.
- ▪More than 10,000 veterans have lost their homes since May 2025, when the VA ended its foreclosure prevention program.
- ▪Nearly 90,000 VA loans are seriously delinquent, with 33,000 in foreclosure, according to NPR.
- ▪The VA Home Loan Program Reform Act, signed in July 2025, allows the VA to advance funds to cover missed payments while preserving low mortgage rates.
- ▪The new partial claim program covers up to 25% of the loan balance and creates a subordinate lien repaid when the home is sold or refinanced.
- ▪The Urban Institute noted the program does not reduce principal or provide ongoing payment relief for veterans with permanently reduced incomes.
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By Aliss HighamUS News ReporterShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.Thousands of veterans are facing growing pressure in the housing market as foreclosures rise on VA-backed home loans and promised new housing for homeless former service members remains uncertain.More than 10,000 veterans have lost their homes since May 2025, when the Department of Veterans Affairs (VA) ended a major foreclosure prevention program, according to industry data cited by NPR.
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