VA Loan Foreclosures Declining

Foreclosures on VA-guaranteed single-family loans are expected to drop below the 14,000 mark this fiscal year after trending above 20,000 only a few years ago.The Department of Veterans Affairs is projecting that foreclosures will total 13,269 when this fiscal year ends Sept. 30, down from 16,001 in fiscal 2004 -- a 17% decline. Foreclosures totaled 20,500 in fiscal 2002 and 24,261 in fiscal 2000. "Foreclosures are going down each year and defaults are also going down," said Keith Pedigo, director of the VA loan guarantee program. "It is consistent with the rest of the industry." The VA reported a 2.39% default rate as of June 30, down from 2.66% at the end of fiscal 2004 and 2.96% at the end of fiscal 2003.