Foreclosure Spike Puts 60,000 Veterans In Danger Of Losing Their Homes

The end of the Veterans Affairs Servicing Program — a federally funded initiative designed to keep vets in their homes — has put tens of thousands service members at risk of losing their homes, Marketwatchreports.

Pressure To Replace The Veterans Affairs Servicing Program

For almost a year, veterans could temporarily modify their loans to a 2.5% interest rate through the Veterans Affairs Servicing Program, which gave vets in delinquency some financial breathing room. That program ended on May 1, leaving almost 60,000 vets in danger of losing their homes.

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“The men and women who wore our nation’s cloth have faced adversity and challenges while defending our freedoms around the world,” Raul “Danny” Vargas, the founder and CEO of the American Latino Veterans Association, told Marketwatch. “The last thing we should do is turn our backs on them when they need help staying in their homes.”

Critics of ending the program have warned that another program needs to take its place. “The work must start immediately to strengthen the VA’s loss-mitigation toolkit, and that includes implementing a permanent partial-claim option, a foreclosure-avoidance tool that is widely used in every other government loan program,” Mortgage Bankers AssociationCEO Bob Broeksmit told MarketWatch.

Current Veterans Affairs Servicing Program enrollees will not be affected by the program ending, but it has stopped taking in new applicants. Since the program started at the end of May 2024 the Department of Veterans Affairs has bought 17,000 loans from mortgage services at a cost of $5.48 million.

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Missed Mortgage Payments Are Up

Missed mortgage payments were up in March, not just from veterans but across the board; seriously delinquent mortgages with 90 days or more of missed payments rose 14% over the same time last year, according to data from Intercontinental Exchange (NYSE:ICE). Though still below historical averages, foreclosure rates are rising fast — up 11% over the first three months of the year compared to the previous quarter, real estate data and analytics company, ATTOM reported.