VA Ends Foreclosure Assistance Program

As reported by several major news outlets, the VA will terminate its Veterans Affairs Servicing Purchase Program (VASP).  VASP was created last year as an emergency rescue program for VA borrowers who risked losing their home following the end of COVID-19 pandemic-era mortgage payment deferral programs in October 2022.  Under VASP, VA purchased delinquent loans from mortgagees and became the primary loan servicer, providing borrowers with a 2.5% fixed rate payment plan for the remainder of their loan.

Termination of the program will not impact eligible veterans who complete their VASP enrollment prior to May 1, 2025.