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The phrase "lost their homes" is correct and usable in written English.
You can use it in any context where someone has been displaced from their home. For example: Many families lost their homes in the hurricane and had to find shelter elsewhere.
Exact(60)
They lost their homes.
People lost their homes".
Thousands lost their homes.
One million people lost their homes.
People have lost their homes and businesses.
Many have also lost their homes.
Schoolmates of their children lost their homes.
Others lost their homes to foreclosure.
People have lost their homes.
Many have lost their homes.
Several of Emily's students lost their homes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com