VA has announced the launching on May 31 of the Veterans Affairs Servicing Purchase (VASP) Program that will help tens of thousands of veterans currently experiencing severe financial hardship avoid foreclosure and stay in their homes. The program is a last-resort tool in VA’s comprehensive suite of home retention options for eligible veterans, active-duty service members, and surviving spouses with VA-guaranteed home loans who are unable to meet their mortgage obligations. 

Under VASP, VA will purchase defaulted VA loans from mortgage services, modify the loans, and place them in the VA-owned portfolio as direct loans. VA will then be able to work directly with eligible veterans to adjust their loans, and their monthly payments, in order to keep their homes.

“When a veteran falls on hard times, we work with them and their loan servicers every step of the way to help prevent foreclosure—including repayment plans, loan modifications, and more,” said VA Under Secretary for Benefits Josh Jacobs. “But some veterans still need additional support after those steps, and that’s what VASP is all about in offering an additional payment option.”

The VA Press Room released a detailed news advisory about VASP on April 10. To read the complete release, click here.