VA halts foreclosures through 2024 and adds VASP loan modification program





VA halts foreclosures through 2024 to give struggling homeowners a chance to modify their mortgage with their new VASP program.

If you’re a Veteran or active-duty service member with a VA-guaranteed home loan and you’re facing foreclosure, the Veterans Affairs Servicing Purchase (VASP) program may help you keep your home. 

VASP is a last-resort option for keeping your home when your loan servicer has determined that no other option can help you avoid foreclosure. The other options that the servicer will consider first for you are repayment plans, special forbearances, or loan modifications. 

Through this program, VA purchases the modified loan from your current loan servicer. A modified loan means that the servicer changed the loan terms to make it easier for you to repay what you owe. 

loan modification

Will you qualify for the VASP Program?


  • Your loan is 3-60 months delinquent.
  • The owner of the property or an immediate family member is living on the property.
  • You aren’t in active bankruptcy.
  • You’ve resolved the reason you were in default and can start making monthly mortgage payments again.
  • You and anyone else listed on the loan have a stable and reliable source of income.
  • Your VA-guaranteed loan is in first lien position, and the property doesn’t have any liens or judgments that would risk a first lien position.
  • You’ve made at least 6 monthly payments since the start of the loan (or since any modification to it).
  • You’re the legal owner of record on the property at this time.
  • You and all others listed on the loan agree to the terms of the VASP modification.

What's the downside of the VASP Program?

The downside with loan modifications of any kind, is that in restructuring the loan, you end up with a higher balance on the loan in order to make the payment affordable. In many cases you will be left with no equity at all. This is especially true today as interest rates are rising, so you will likely be modifying your mortgage with a higher interest rate than you have now.

If you're already upside down in your loan, or will end up upside down after a modification, a short sale may be a better solution to get out of an unaffordable home with no equity.

VA Compromise sale
Don't know where to start?

Are you in trouble with your VA loan and thinking of selling? We can help!

Last Updated on June 7, 2024 by Minna Reid


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