Veterans Are Facing a Foreclosure Crisis — Here’s What You Need to Know

America’s veterans are in the middle of a housing crisis that isn’t making headlines — but it should. Right now, thousands of veteran families who fought for our country are fighting to keep a roof over their heads. And the numbers are staggering.

A Spike in VA Loan Foreclosures

Recent reports show that VA-backed home loans are experiencing the steepest rise in foreclosures in years:

• The percentage of VA loans in foreclosure jumped to 0.84% in Q1 2025, the highest since 2019.

• By Q2, VA foreclosure filings had risen 61% year over year — while conventional loan foreclosures actually dropped.

• VA loans now make up 20% of all active foreclosures, far more than their share of the mortgage market.

This isn’t just a statistic. It means tens of thousands of veterans — and their families — are at immediate risk of losing their homes.

Why This Is Happening

The crisis isn’t about irresponsibility. It’s about broken promises and disappearing protections.

1. The End of Lifeline Programs

   • The Veterans Affairs Servicing Purchase (VASP) program, which had helped over 17,000 veterans save their homes with lower interest rates, ended on May 1, 2025.

   • A previous partial-claim program, which allowed veterans to move missed payments to the end of their loan at 0% interest, ended in 2022.

   With both tools gone, veterans have almost no safety net.

2. Foreclosure Backlog

   • A moratorium had temporarily paused VA foreclosures during 2024. But when it lifted this year, a flood of cases hit the system all at once.

3. Economic Pressures

   • Rising insurance costs, inflation, and stagnant wages are hitting veteran households hard.

   • Many families who were just hanging on have now slipped into serious delinquency.

What This Means for Veterans

• Delinquencies Rising: The VA loan delinquency rate is now 4.63%, and the number of veterans seriously behind on payments is climbing fast.

• Higher Risk Than Others: VA borrowers are seeing delinquency increases far worse than conventional borrowers.

• Homes on the Line: Without intervention, tens of thousands of veterans could be displaced before the end of the year.

What Needs to Happen Now

Congress took a small step in July by passing the VA Home Loan Program Reform Act, reinstating a limited partial claim option. But this is not enough. Veterans need long-term, permanent protections to keep their homes.

• We need a permanent partial-claim solution written into law.

• We need stronger foreclosure prevention tools for veterans who served this nation.

• We need public pressure to make sure this crisis doesn’t get swept under the rug.

What You Can Do

• Spread the word. Share this post. Let people know that veterans are being left behind.

• Contact your representatives. Demand they strengthen veteran housing protections.

• Support organizations like the KOVH Foundation that are fighting to keep veteran families housed.

• If you are a veteran at risk: Call the VA loan technician line at 877-827-3702 immediately to explore your options.

Final Word

This is not just about housing. It’s about honoring our nation’s commitment to veterans. No one who put their life on the line for this country should come home to find their family at risk of foreclosure.

The time to act is now. If we don’t raise our voices, thousands of veterans will lose their homes in silence.