Last year, the Department of Veterans Affairs (VA) began the Veterans Affairs Servicing Purchase (VASP) program to provide support for veterans who are struggling to keep up with their mortgage payments. Aiming to help them avoid foreclosure, VASP provided many benefits to veterans facing financial hardship.
Unfortunately, the VA recently announced the swift end to the program, stranding many veterans who are having difficulty making payments following the end of pandemic-era veterans’ relief programs.
At Consumer Law Attorneys, we are here to offer our support and guidance for veterans and all homeowners seeking solutions. If you need assistance avoiding foreclosure or defending against an active case, do not hesitate to reach out to us for help.
Our experienced foreclosure defense lawyers at Consumer Law Attorneys are dedicated to helping you through tough times like these.
VASP Terminated on May 1, 2025
The VA Foreclosure Assistance Program (VASP) was a vital resource for veterans facing the threat of losing their homes. However, the VA announced on April 23, 2025, that as of May 1, 2025, the program was terminated and no longer accepting submissions from struggling veteran homeowners. The Department also stated it is rescinding its prescribed steps used to consider veterans for financial hardship support, which makes the process much less transparent and consistent.
This move leaves many veterans in a precarious situation. According to reports, about 90,000 VA mortgage holders are seriously delinquent, with around 33,000 VA mortgages already in foreclosure proceedings. If you are a veteran who was relying on VASP for support, it is critical to explore alternative options to protect your home. Our foreclosure defense attorneys are ready to assist you.
What was the Veterans Affairs Servicing Purchase (VASP) Program?
The Veterans Affairs Servicing Purchase program was designed to assist veterans who are facing financial challenges in meeting their mortgage payments. This program provided an opportunity for veterans to avoid foreclosure on their homes by selling their properties to the VA loan servicer. By participating in the VASP program, veterans could potentially avoid the stress and uncertainties associated with foreclosure.
Benefits of the VASP Program
By engaging in the VASP program, veterans could benefit from several advantages, including:
- Avoiding Foreclosure: The primary benefit of the VASP program was that it helped veterans steer clear of foreclosure proceedings, which can have long-lasting negative effects on their financial well-being.
- Debt Relief: By selling their homes through the VASP program, veterans could eliminate mortgage debt and potentially other outstanding debts associated with homeownership.
- Protecting Credit Scores: Foreclosure can significantly impact an individual’s credit score. By participating in the VASP program, veterans could protect their credit scores and maintain financial stability.
Qualifications for VASP included delinquency of three to 60 months, stable income, and first-lien position. Now, veterans in these positions have few places to turn before they face potential foreclosure.
Congress is considering legislation to launch a partial claims program for veterans, though there is no telling if it will pass or what the final version will include if it is implemented. Our foreclosure defense attorneys will be watching to see what happens, so we can best assist our veteran clients.
VA Mortgage Delinquencies Increased in 2024
As mentioned, recent reports have indicated a concerning rise in VA mortgage delinquencies in 2024. Both VA and FHA mortgages had more missed payments than traditional mortgages last year, showing these borrowers are in particular need of relief.
This increase in delinquencies has put many veterans at risk of foreclosure, highlighting the importance of seeking immediate assistance if you are falling behind on your VA mortgage payments. Don’t wait until it’s too late to take action. Contact our foreclosure defense lawyers at Consumer Law Attorneys now.
Are You a Veteran Behind on Your Mortgage? What to Do
If you are a veteran who is struggling to keep up with your mortgage payments, it’s essential to know that foreclosure is not a foregone conclusion. By taking proactive steps and seeking the right support from trusted legal professionals, you can explore various options to potentially protect your home and secure your future financial stability.
Immediately Consult a Foreclosure Defense Lawyer
When facing the threat of foreclosure, your first step should be to consult a foreclosure defense lawyer. These legal professionals regularly help homeowners take steps to prevent the start of foreclosure proceedings or develop defense strategies if you already face a foreclosure case. Your attorney can provide valuable guidance on how to protect your rights and property.
Remember that Foreclosure is Not Inevitable
Contrary to popular belief, foreclosure does not always mean you will lose your home. With the right legal representation and proactive measures, you can explore a range of loss mitigation options to avoid losing your home. Don’t wait until you receive a foreclosure notice; take action now to secure your future. You can begin preventing foreclosure the moment you believe you might struggle to make mortgage payments by working with the right legal counsel.
Exploring Loss Mitigation Options
When dealing with mortgage delinquencies, you should always work with a foreclosure defense attorney to explore various loss mitigation options that may be available to you. Some of the common options include:
- Loan modification
- Forbearance
- Repayment plan
- Partial claim
- Reinstatement
- Deed in lieu of foreclosure
- Short sale
Many of these allow you to get your payments on track and keep your home. Others allow you to sell your home without having a foreclosure reported on your credit report. By working with a foreclosure defense lawyer, you can assess these options and determine the best course of action based on your unique circumstances and financial goals.
Consult a Foreclosure Defense Lawyer About Your Options Today
If you are a veteran – or anyone else – facing mortgage delinquencies or foreclosure threats, don’t hesitate to seek the guidance of our foreclosure defense lawyers. Our legal team has the experience to assess your loss mitigation options, represent you in foreclosure proceedings, and protect your home.
Contact Consumer Law Attorneys today to explore your options and secure the future for you and your family.
