FHA and VA mortgage defaults soar in 2026!
Endless FHA and VA loan workout program offerings during and post Covid kept the foreclosures at bay for the last 6 years, but eventually the bills come due! As Covid era mortgage rescue programs have finally sunset and policy changes have come into effect, common sense has returned to government mortgage default servicing. Unfortunately for many homeowners, making the mortgage payments again is simply not a possibility, and liquidation has taken the forefront.
FHA and VA lead the way in foreclosure starts. This is not unexpected as these loans offer the lowest down payments, and have the most flexible lending criteria. FHA and VA always lead the way of rising foreclosures:
Serious delinquency rates for FHA loans are rising sharply compared to conventional mortgages.
Serious delinquency rates (90+ days past due or in foreclosure) for FHA loans saw significant increases in late 2025 and as of February 2026 are up 14% over the prior year. Florida has a high concentration of FHA loans, often leading the nation in new foreclosure starts.
As of April 2026, foreclosure rates for VA backed loans have hit a decade high.
Around 90,000 additional veterans are currently behind on payments, representing a massive wave of potential foreclosures. Jacksonville, Florida has a large military population dues to the military bases here, and many local homeowners have utilized VA loans.
What to do if you are in trouble with your VA or FHA loan in Florida.
If you have already exhausted your home retention options, or have simply decided you wish to move on from the home, you can still sell the home prior to your foreclosure and walk away. Even if you owe more than your home is worth, it is still possibly to sell your home in a short sale.
Short Sales with FHA and VA:
FHA short sales
FHA offers a standard, if rather complicated short sale program called the FHA PFS. Sellers that qualify can expect a sale with full debt forgiveness and qualifying owner occupant sellers can even receive a $3,000 relocation assistance check at close.
VA short sales
VA short sales are called "VA Compromise Sales". This rather simple program has remained unchanged for years, and offers mortgage debt forgiveness in the form of an entitlement reduction at successful completion, as well as a $1,500 relocation assistance check to qualifying owner occupant homeowners.
Will you qualify for a short sale? Find out now!
Last Updated on April 12, 2026 by Minna Reid
