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Restore VA Home Loan Protections Before More Veterans Lose Their Homes

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Sponsor: The Veterans Site

Veterans earned this benefit through service, not to watch it vanish when hardship strikes and foreclosure closes in.

Man kneels on a front lawn at sunset, holding a small American flag outside a suburban home.

The VA home loan program has long stood as one of the clearest promises made to those who served. But that promise has weakened. After the VA shut down its Veterans Affairs Servicing Purchase program in May 2025, more than 10,000 veterans lost their homes to foreclosure, and another 90,000 fell behind or moved toward the same outcome.1

The Safety Net Disappeared Before A Real Replacement Arrived

VASP gave qualifying veterans a path to keep their homes through affordable terms. When it ended, many borrowers were left with worse options than other federally backed homeowners. Some faced higher-interest loan modifications that drove monthly payments up by hundreds of dollars. Others lost any realistic path to recovery at all.2

Veterans Should Not Face Foreclosure Because Of Policy Failure

This crisis did not appear out of nowhere. Mortgage industry representatives warned that ending the rescue program before a replacement was ready would lead to foreclosures. Housing advocates also warned that veterans would be left with fewer protections than borrowers backed by FHA, Fannie Mae, or Freddie Mac.1

Veterans who fell behind after medical issues, disability delays, job loss, or rising costs should not be pushed into unaffordable new payments when a safer alternative could keep them housed. A home loan benefit should help stabilize military families, not leave them exposed at their most vulnerable moment.1

Tell The VA To Restore Real Protection

We call on VA leadership to restore a meaningful foreclosure prevention option, pause avoidable foreclosures while a full solution is implemented, and ensure veterans receive protections at least equal to those offered through other federal home loan programs. Veterans kept faith with this country. The VA must now keep faith with them. Sign the petition.

More on this issue:

  1. Chris Arnold and Quil Lawrence, NPR (2 April 2026), "Veterans Mortgages Foreclosure VA Rescue."
  2. Raw Story Staff, Raw Story (1 May 2025), "Veterans Facing Foreclosures As Trump Administration Pulls Plug On Biden Program Report."

The Petition

To the Secretary of the Department of Veterans Affairs, Principal Deputy Under Secretary, and VA Home Loan leadership,

We are writing to urge the Department of Veterans Affairs to restore a strong, accessible home-retention program for veteran borrowers and to halt avoidable foreclosures while a full replacement is put in place.

Veterans who use the VA home loan program do so because this country promised them meaningful support in return for their service. That benefit should not disappear the moment hardship strikes. Yet reporting now shows that more than 10,000 veterans have lost their homes to foreclosure since the VA ended the Veterans Affairs Servicing Purchase program, or VASP, in May 2025. Another 90,000 veterans are reportedly behind on their mortgages or already in the foreclosure pipeline.

The current situation is not simply the result of missed payments. It is the result of a failed safety net. Veterans were left in limbo after years of policy changes, canceled options, and delayed replacements. Mortgage industry voices reportedly warned that ending VASP before a workable alternative existed would lead directly to foreclosure. Many veterans then found themselves forced toward higher-cost loan modifications or toward the loss of their homes altogether.

That is not a humane way to treat people who served this nation. Veterans coping with disability, illness, lost income, family strain, and rising living costs deserve practical solutions that preserve stability. Homeownership is often the foundation that keeps a family secure, children in school, and disabled veterans connected to the care and community they need. When that foundation collapses, the damage spreads far beyond one mortgage statement. The reporting includes examples of veterans whose monthly payments rose by hundreds of dollars after VASP ended, even though a more affordable path might have kept them current and housed.

We urge the VA to take three steps immediately:

  • Restore a meaningful foreclosure-prevention program that prioritizes payment stability for distressed veteran borrowers.
  • Pause avoidable foreclosures until a fully functional replacement is available and accessible.
  • Ensure that veterans are not left with weaker protections than other federally backed borrowers.

Veterans earned better than a broken system that places them one hardship away from losing their homes. We ask you to act with urgency, compassion, and fairness.

These actions will ensure a better future for all.

Sincerely,

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