After NPR first reported on the problem, a group of senators sent a letter to the VA asking them to immediately stop the foreclosures.
November 19, 2023

The Department of Veterans Affairs is halting foreclosures for 6 months for veterans and servicemembers who have VA Loans. The move follows an investigation by NPR that found thousands of veterans who took what's called a COVID forbearance are now at risk of losing their homes through no fault of their own. Via NPR:

"Helping Veterans and their families stay in their homes is a top priority at VA," said VA Press Secretary Terrence Hayes in a statement. "We are calling on mortgage servicers to pause foreclosures of VA-guaranteed loans through May 31, 2024."

The forbearance program was set up by Congress after the pandemic hit in order to let people who suffered a loss of income skip mortgage payments for six or 12 months, and then have an affordable way to start paying their mortgage again.

But in October 2022, the VA ended the part of the program that allowed homeowners an affordable way to get current on their loans again, which has left many veterans facing foreclosure. The VA has a new program to replace it, but says it will take four or five months to implement.

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