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Veterans Foreclosure Crisis

Closing the gap that puts veterans out of their homes

Living record

THE VETERANS FORECLOSURE CRISIS · PRINCIPAL FINDING

VA launched a new foreclosure-prevention program in June. That does not mean every servicer has implemented it.

VA says it was ready to accept Partial Claim trial-payment-plan events on June 15, 2026. VFC tracks what is actually operational, what remains unknown, who was warned, what decisions followed, and where veterans can get help.

Two problems remain. The VA’s new Partial Claim still excludes families already pushed beyond its eligibility barriers, while access for families who may qualify now depends on whether their own mortgage servicer has implemented the new VA waterfall. Servicers have until November 28, 2026. The program exists; access is still uneven.

THE DISTINCTION THE WHOLE RECORD TURNS ON

LAUNCHED ≠ IMPLEMENTED

  1. June 15

    VA ready to accept Partial Claim trial-payment-plan events.

    S007 · VA launch release

  2. Your servicer

    Implementation varies during rollout. Access depends on the servicer having implemented both the new Loss Mitigation Waterfall and the Partial Claim.

    S025 · VA servicer FAQs

  3. November 28

    The deadline VA’s borrower guidance gives for servicers to add Partial Claims to their systems.

    S025 · S006

VA issued its final policy on June 1 and launched on June 15. The 180-day implementation period is measured from the June 1 final policy, not from the June 15 launch. These dates establish the implementation window. They do not establish the current status of every servicer.

CURRENT STATUS · WHAT IS TRUE TODAY

The program exists. Access still depends on implementation at the borrower’s servicer.

Program status

Live at VA · rolling out at servicers

VA began accepting Partial Claim trial-plan events June 15, 2026. Servicers have until Nov. 28, 2026 to implement the new waterfall.

S007 · S025

Servicer access

Varies by servicer

Pennymac publicly announced implementation August 6. VFC has not verified a complete public cross-servicer implementation list. Ask your servicer whether its VA Loss Mitigation Waterfall and Partial Claim are fully implemented, and request the answer in writing.

S293 · the servicer’s own public position, not VFC verification of any loan

Cross-servicer list

Not located by VFC

VFC has not located a comprehensive public VA list showing implementation status for every mortgage servicer. That is a search finding, not proof that no such record exists.

Current Status →

Which servicers have implemented it?

VFC’s servicer tracker has its columns and its five states in place. No rows are published yet. Rows will be added only from verified evidence, one servicer at a time, each carrying its own source, last-checked date and limitation.

An empty tracker is the honest current state of the record. It is not a claim that no servicer has implemented.

See the full servicer tracker →

WHERE IS THE DATA?

Where is the servicer-by-servicer implementation list?

A veteran cannot work out their own servicer’s operational status from VA’s June launch announcement alone. This is how VFC records a missing public record: what was searched, what was found, and why it matters.

Question to search finding

The question

Does VA publish a complete servicer-by-servicer implementation list?

What the search returned

VFC did not locate a comprehensive public VA servicer-by-servicer Partial Claim implementation list in the sources below.

What is still missing publicly

A current harm-and-rollout picture

VFC has not located a current VA public series showing foreclosures, displacement, and servicer-by-servicer Partial Claim implementation together. The principal published harm counts on this site remain from spring 2026 and carry their original dates.

See exactly what we checked →

HOW WE GOT HERE · THE WHOLE STORY

How VA ended one program before the replacement was operational

Everyone got the same COVID help. Only veterans got trapped.

During COVID, the federal government told homeowners it was safe to pause their mortgage payments. Every other federal loan program kept a way to resume the normal payment afterward, only VA borrowers lost theirs, twice: one administration ended the original exit in October 2022, and the next cancelled its replacement in May 2025 with eight days’ notice, while tens of thousands of eligible families were still in line. Congress passed a bipartisan fix in July 2025, and it took the VA eleven months to open the program. The status bar above is where that stands today.

How the rule changed. Four documents in eleven months. The protection was narrower at the end than at the start.

Follow the full record →

Read it document by document, with what each change means for a family →

  1. Mar 2020

    CARES Act forbearance begins

    Families in COVID-19 forbearance were told, in guidance issued to their servicers, that paused payments would be repaid over time and that a lump sum would not be required.

    S049

  2. Oct 28, 2022

    The COVID-19 partial claim expires by regulation

    Families already enrolled were not carried into any successor option. There was no grandfathering provision and no notice to borrowers that the terms had changed.

    38 C.F.R. § 36.4809(c)

  3. May 2024

    VASP, the replacement, launches

    Veterans Affairs Servicing Purchase (VASP). Only the mortgage company (the loan servicer) could apply for a family.

    Record T005

  4. Apr 23, 2025

    VA announces the VASP wind-down

    VBA Circular 26-25-2, issued to servicers.

    Circular 26-25-02

  5. May 2025

    VASP cancelled with eight days’ notice

    75,000 veteran borrowers were three or more payments behind; about 17,000 had been accepted. Tens of thousands of eligible families were still in line.

    S124 · NCLC and CRL, May 1, 2025

  6. Jul 30, 2025

    Congress creates the partial claim

    Bipartisan, signed into law: H.R. 1815, Public Law 119-31.

  7. Nov 12, 2025

    A funding bill narrows the foreclosure protection that came with it

    It had stood for 105 days.

    Pub. L. 119-37

  8. Feb to Mar, 2026

    VA drafts the rules and takes public comment

  9. Jun 1, 2026

    VA publishes the final M26-4 handbook guidance

    It carries two barriers that were not in the draft anyone commented on. VA’s 180-day implementation period is measured from this date.

    S006 · S025

  10. Jun 15, 2026

    VA begins accepting Partial Claim trial-payment-plan events

    Live at VA is not the same as available at your mortgage company.

    S007

    live at VA

  11. Nov 28, 2026

    Servicer implementation deadline

    The deadline VA’s borrower guidance gives for servicers to add Partial Claims to their systems, at the end of the 180-day period that began with the June 1 final policy. Until then, verify implementation with your own servicer.

    S025

    verify now

SCALE OF HARM · THE COUNTS AND THEIR DATES

How many veteran families have been affected?

The principal harm counts on this site remain from spring 2026. VFC has not located a current VA public series showing foreclosures and displacement as they occur.

Lost their homes since VASP ended

15,000+

At the May 20, 2026 Senate Veterans' Affairs Committee hearing, Sen. Richard Blumenthal said recent data indicated that more than 15,000 veterans had lost their homes since VASP ended.

SVAC hearing, May 20, 2026 · S001 · the underlying dataset has not been identified

Behind or in foreclosure, April 2026

~90,000

VA borrowers reported by NPR as behind on their mortgages or in the foreclosure process, based on ICE Mortgage Technology data.

NPR, Apr 2, 2026 · S002 · an April snapshot, not a current September count

No public series located

The missing linked measure

?

How many of the displaced are now homeless. VFC has located no public count, and no VA plan to rehouse them.

No public series located · last checked Sep 18, 2026 · Why this missing number matters →

When VASP was cancelled, most eligible families never had a path in

Behind at cancellation

75,000

veteran borrowers were three or more payments behind when VASP was cancelled.

NCLC and Center for Responsible Lending, May 1, 2025 · S124

Accepted before shutoff

~17,000

had been accepted into the program before it was shut off.

Same source · S124

No path in

58,000+

had no path in, and only a servicer, never the veteran, could submit them.

Same source · S124

$72,000–$74,000

what each foreclosure costs the government. $0, what the tool that prevents it costs up front.

You may have heard: “helping them would cost taxpayers more” →

VFC method

NO UNDUPLICATED TOTAL ESTABLISHED. The available counts describe different populations, dates and stages of mortgage distress. VFC has not established how much those groups overlap, so they should not be added into a single total of families affected.

Method last run 2026-09-18 Full methods

Congressional testimony & VA figures, spring 2026; no newer count located. Every number carries a source, a date, a content label, and its limitation, definitions & methods →

Every harm count, with its method and limits →

WHO THE NEW PROGRAM DOES NOT SOLVE

PROJECT ANALYSIS

One program does not reach every affected family

This project's analysis finds three groups of families, each harmed by a different government action, and no single program that reaches all three.

COHORT A

The forbearance families

Who
Families who did exactly what the government said and paused payments under COVID forbearance.
What changed
The same-rate exit disappeared when the COVID partial claim ended in October 2022. Pushed toward balloon payments or unaffordable modifications.
The fix they need
A restored same-rate modification or partial claim, applied to families already forced into higher-rate deals.

COHORT B · THE VASP GAP

Foreclosed in the coverage gap

Who
Families who fell into default after the VA killed VASP (May 2025) and before the Partial Claim launched (June 2026), a year with nothing operational to help.
Unresolved
Many are already foreclosed on or displaced.
The fix they need
The unused Section 3(h) authority, applied to pre-enactment defaults, plus counting and rehousing the displaced.

COHORT C

Eligible on paper, barred in practice

Who
Families who may qualify under the new rules but are blocked by VA-added eligibility criteria, or are still waiting for their servicer to complete implementation during the rollout window.
The fix they need
Remove the administrative barriers, and pause foreclosures and evictions until the program is operational at every servicer.

THEY WERE WARNED · ACCOUNTABILITY

They were warned before key decisions took effect

Not a claim about what anyone knew. A record of what they were told, spanning two administrations. Three selected entries.

  1. Feb 15, 2024

    The partial claim gap and foreclosure exposure are raised directly, three months before VASP launches.

    Notice: Witnesses at hearing told House VA Committee at HVAC printed hearing record.

    DOCUMENTED FACT Source S056

  2. Mar 11, 2025

    Asked what happens without the rescue program, Elizabeth Balce answers: the short answer is foreclosure. Period.

    Notice: Mortgage Bankers Association (Elizabeth Balce) told House VA Subcommittee on Economic Opportunity at Subcommittee hearing testimony.

    DOCUMENTED FACT

  3. Mar 26, 2026

    The draft policy would push roughly 30,000 veterans into average payment increases of about 150 dollars per month.

    Notice: National Consumer Law Center (Alys Cohen) told House VA Committee at HVAC hearing.

    DOCUMENTED FACT Source

LATEST

What changed most recently

The full dated record on News & Record · chronology on the timeline · where every office stands on the tracker

VERIFY THE EVIDENCE

See the documents, data, and methods behind this record

VFC publishes the evidence registers behind the site so readers can trace claims, dates, definitions, limitations, and corrections. Every fact on this site traces to a citation.

WHERE THE COHORT IS

Where families are reporting harm

Documented cohort families by state. A count only, never named, unless a family consents. A floor, not a ceiling: it reflects only families who have reached this project.

Open the cohort map →

The full picture →

TAKE ACTION · PARTICIPATE · GET HELP

Where to start

Pick the one that fits you. Everything else on this site is one click behind it.

This is happening to my family

Behind, in foreclosure, or already out of the house. Help by stage, the First 72 Hours checklist, and how to build your case for the months after.

Get help now → The First 72 Hours →

I am a reporter

Press contact, documents, deep links, and how we handle sources. Every fact on this site traces to a citation.

Press desk →

I work for a congressional office, a committee or a veterans organization

Five print-ready briefs, one for each committee desk, plus the record behind every figure in them.

The briefs →

I want to help

What moves this and who moves it: the offices to contact, the scripts, and how to help keep the record.

Take action →

WHAT MUST HAPPEN

THE PROJECT'S ASKS

  1. Pause & count

    Pause VA foreclosures and evictions until the new relief is actually working at every servicer, and publish the monthly counts. The VA has used a pause before; members of Congress and the National Consumer Law Center have already asked for it again.

  2. Remove the handbook barriers

    The barriers excluding already-harmed families were not written by Congress into H.R. 1815, the VA Home Loan Program Reform Act. VA added them in handbook text and can revise them the same way.

  3. Count the displaced

    Publish the monthly VALERI aggregates, new defaults, foreclosure starts, and VA-acquired REO, and build a remediation pathway for families already foreclosed, past sale, or displaced during the implementation gap. The policy is forward-only and leaves that cohort with no remedy. The mandated GAO review arrives after the harm, not during it.

  4. Use the authority already given

    Congress expanded the Secretary’s authority in 38 U.S.C. §3737(h) in November 2025. It permits interim guidance and gap-period relief before regulations issue, and it sits unused.

The June 2026 M26-4 handbook policy is final, but implementation remains uneven across servicers until November 28, 2026. The problem is implementation, not statute. No new law is required for interim guidance or a remediation pathway. See all six asks →

Also on this site: what happened, every claim, its source, and the six registers, the data files, build your case, who keeps this, and how to reach us.

METHODS, SOURCES AND PROVENANCE

How this page is maintained, and how to correct it

If you are a veteran in crisis, call the Veterans Crisis Line: 988, then press 1.