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VA Ends Enrollment for Mortgage Rescue Program as Foreclosure Fears Grow

The Veterans Affairs Servicing Purchase Program, which helped over 17,000 veterans avoid foreclosure, closed to new enrollees on May 1, 2025, with no replacement yet in place.

People walk past the Department of Veterans Affairs headquarters a block from the White House on March 6 in Washington, DC.
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Overview

  • The Veterans Affairs Servicing Purchase Program (VASP), launched in May 2024, has officially stopped accepting new enrollees as of May 1, 2025.
  • VASP helped veterans in financial distress by purchasing and modifying over 17,000 troubled loans worth $5.48 billion, reducing foreclosure risks for participants.
  • Concerns are mounting as nearly 90,000 VA loans are in trouble, including 81,000 veterans who have missed three or more payments, with one-third of these loans already in foreclosure.
  • House Republicans are advocating for a partial claims program offering interest-free loans to assist veterans, but no formal replacement for VASP is currently in place.
  • The VA defends the program's phase-out, citing its lack of capacity for loan restructuring, while housing advocates and lawmakers warn of a potential surge in veteran foreclosures without immediate alternative solutions.