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VA’s Extension of Foreclosure Moratorium

by Levi Rodgers | Dec 16, 2024 | News, VA Loans

Last Updated June 17th, 2025

The Department of Veterans Affairs (VA) has extended its foreclosure moratorium, providing vital relief for veterans with VA-backed home loans. This extension, set to last through December 31, 2024, is designed to help veterans experiencing financial hardship retain their homes.

For many, this extension represents a lifeline, allowing them to recover from economic challenges while maintaining stable housing.

Let’s explore the details of the VA’s foreclosure moratorium, what it means for veterans, and how eligible borrowers can benefit from this critical policy.

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What is the VA Foreclosure Moratorium?

A foreclosure moratorium is a temporary suspension of foreclosure proceedings. In this case, the VA has halted foreclosures on VA-guaranteed loans to protect veterans facing financial difficulties.

Key features of the VA’s moratorium:

  • Applies to VA-guaranteed home loans: This includes loans where the VA acts as a guarantor.
  • Temporary halt on foreclosures: Servicers cannot initiate or proceed with foreclosure processes during the moratorium period.
  • Designed for struggling borrowers: This policy helps veterans who may be unable to make regular mortgage payments due to financial hardship.

Who Qualifies for the VA’s Foreclosure Moratorium?

Not all borrowers are automatically covered by the moratorium. To qualify, you must meet specific criteria:

  • Loan type: The moratorium only applies to VA-guaranteed home loans.
  • Current hardship: Borrowers must demonstrate financial hardship caused by circumstances such as job loss, medical expenses, or other significant challenges.
  • Primary residence: The property must serve as the borrower’s primary residence.

If you’re unsure whether you qualify, contacting your loan servicer or the VA directly is the best first step.


How Does the Moratorium Benefit Veterans?

The foreclosure moratorium offers several key benefits:

  • Time to recover financially: Veterans struggling with payments have additional time to stabilize their finances.
  • Retention of housing: The policy prevents immediate foreclosure, allowing borrowers to remain in their homes.
  • Access to alternative options: Veterans can use the extra time to explore repayment plans, loan modifications, or other relief programs.

According to a VA spokesperson, “The moratorium ensures that veterans have every opportunity to retain their homes, even during periods of financial uncertainty.”


Steps to Take if You’re Facing Foreclosure

If you’re a veteran struggling to make mortgage payments, here are actionable steps to help you navigate the process:

1. Contact Your Loan Servicer
Reach out to your loan servicer immediately to discuss your situation. They can confirm whether your loan qualifies for the moratorium and help you understand your options.

2. Explore VA Home Loan Relief Options
The VA offers several programs to assist borrowers, including:

  • Repayment plans: Structuring a payment plan to catch up on missed payments.
  • Loan modifications: Adjusting loan terms to make payments more manageable.
  • Refunding: The VA may buy the loan from the lender to provide direct assistance.

3. Keep Documentation Ready
Having proof of your financial hardship, such as job termination letters or medical bills, can strengthen your case when applying for relief programs.


Comparing the VA Moratorium to Other Protections

Here’s how the VA’s foreclosure moratorium stacks up against similar programs:

ProgramEligibilityDurationKey Benefits
VA Foreclosure MoratoriumVeterans with VA-backed loansThrough Dec. 31, 2024Prevents foreclosure, time to explore options
FHA Foreclosure ReliefFHA loan borrowersVaries by programSimilar protections, but stricter income caps
State-Specific ProtectionsVaries by stateVariesProtections may be more limited in scope

Understanding these differences can help you identify which programs might apply to your situation.


Alternatives to Foreclosure

If you’re unable to keep up with payments even after the moratorium, here are a few alternatives to consider:

  • Short Sale
    Selling the property for less than the loan balance, with the lender’s approval.
  • Deed in Lieu of Foreclosure
    Transferring the property title to the lender to settle the debt.
  • Loan Refinancing
    Exploring other mortgage options that better align with your financial situation.

These alternatives can help minimize the long-term financial impact of foreclosure.


What Happens When the Moratorium Ends?

The foreclosure moratorium won’t last forever, so it’s crucial to prepare for its expiration. Once the moratorium ends:

  • Loan servicers may resume foreclosure proceedings for borrowers still in default.
  • Veterans should work with their servicers during the moratorium to establish repayment or modification plans.

Financial advisor Rebecca Carter notes, “The moratorium is a temporary reprieve, not a permanent solution. Veterans must use this time wisely to secure their financial future.”


Common Challenges Veterans Face with Mortgage Payments

Some veterans may face unique obstacles when managing their mortgage payments:

  • Unemployment or underemployment
  • Rising medical expenses
  • Unexpected home repairs or maintenance costs
  • Limited awareness of VA resources

By understanding these challenges, veterans can seek targeted solutions to overcome them.


The Bigger Picture: Housing Stability for Veterans

The VA’s foreclosure moratorium reflects a broader commitment to supporting veterans’ housing stability. Beyond this policy, the VA offers educational resources, counseling services, and financial assistance programs to help veterans achieve long-term homeownership success.


FAQs About the VA Foreclosure Moratorium

What is the purpose of the VA foreclosure moratorium?
The VA foreclosure moratorium temporarily halts foreclosure proceedings on VA-backed loans, giving veterans time to recover from financial hardship and explore relief options.

Does the moratorium apply to all VA loans?
No, it applies only to loans in default due to documented financial hardship. Additionally, the property must be the borrower’s primary residence.

What should I do if I still can’t make payments after the moratorium ends?
If you’re unable to resume payments, consider alternatives like repayment plans, loan modifications, or selling the home through a short sale.

Can I qualify if I’ve used the moratorium before?
Yes, veterans who previously benefited from the moratorium may still qualify if they meet the current criteria.

How can I find out if my loan qualifies for the moratorium?
Contact your loan servicer or the VA for confirmation. They can verify eligibility and guide you through the process.

Will the moratorium impact my credit score?
The moratorium itself does not negatively affect your credit score. However, missed payments leading up to it may still appear on your credit report.

Is there any cost to apply for relief under the moratorium?
No, there is no cost to qualify for or utilize the foreclosure moratorium.

Are other relief programs available besides the moratorium?
Yes, the VA offers repayment plans, loan modifications, and refunding options to help borrowers regain financial stability.

Levi Rodgers
Levi Rodgers

Levi Rodgers is a real estate expert and retired U.S. Army Green Beret. He writes about VA loans, homeownership, and helping Veterans buy homes. After service, he built a top real estate team and shares trusted advice for first-time and military buyers. Get to know Levi Rodgers

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