Veterans Affairs Servicing Purchase (VASP) Program

The Veterans Affairs Servicing Purchase (VASP) program was offered starting May 31, 2024, to provide a last resort option to Veterans to allow them to retain their homes when traditional loss mitigation options are not feasible.

• VA understands how stressful it can be to face the possibility of foreclosure, and we are committed to doing everything possible to help Veterans and their families stay in their homes. 
• That’s why, on May 29, 2024, VA strongly encouraged mortgage servicers to implement a targeted foreclosure moratorium of VA-guaranteed home loans through December 31, 2024. 
• This new targeted moratorium will give Veterans and their families more time to explore all home retention options. while mortgage servicers implement the VASP program – a new, last-resort tool for qualified Veterans experiencing severe financial hardship.
• When a Veteran experiences financial hardship, VA has several options to help Veterans stay in their homes. VA’s home retention options include:
  • Forbearance Agreements.
  • Repayment Plans.
  • Loan Modifications.
  • Veterans Affairs Servicing Purchase
• VASP specifically looks to assist Veterans most at risk of foreclosure, offering a crucial safety net.
• As of December 4, 2024, VA has received more than 4,400 VASP loans and servicers continue to submit VASP loan requests.
• For those servicers who have not yet fully implemented VASP, VA will continue to work with them to process VASP loan requests as soon as practicable. If it appears a borrower would be qualified for VASP, servicers should hold those files until they are operationally ready to process VASP requests.