Veterans Affairs Servicing Purchase (VASP) program FAQs
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. Find out if VASP is an option for you.
How does the VASP program work?
Through this program, we purchase the modified loan from your loan servicer. A modified loan means that the servicer changed the loan terms to make it easier for you to repay what you owe.
When will the VASP program be available?
Loan servicers can send VASP submissions to us as soon as May 31, 2024. But we know that servicers may need time to comply. For this reason, servicers have until October 1, 2024, to get familiar with the process and the technology. We urge servicers to report any technical challenges that cause extended timeframes. We want to be sure these challenges don’t prevent you from getting help from this program.
If you’re having trouble working with your servicer, call us at 877-827-3702 and select 4 (TTY: 711). We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.
Is VASP an option for me?
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. You may hear your servicer refer to VASP as the last option in the “Home Retention Waterfall.” The other options that the servicer will consider first are repayment plans, special forbearances, or loan modifications. They’ll review the required criteria for VASP to determine if your loan qualifies. Tell your servicer right away if your financial situation changes.
Your loan servicer will tell you if you can use the VASP program to avoid foreclosure on your home. This isn’t a program that you apply for yourself.
What criteria determines if my loan qualifies for VASP?
- Your loan is 3-60 months delinquent (you’re 3-60 months late paying back the loan) when your servicer submits it into the program.
- The owner of the property or an immediate family member is living on the property.
- You aren’t in active bankruptcy (and neither is anyone else listed on the loan) when your servicer submits the loan into this program. We’ll accept a dismissed or discharged bankruptcy (Chapter 13 or Chapter 7).
- 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 our 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 if my loan doesn’t meet the criteria for VASP?
If your loan doesn’t meet the criteria for VASP, you may want to consider alternatives to foreclosure. You could sell your home through a private sale. Or, your servicer might agree to a short sale or a deed-in-lieu of foreclosure. Contact a VA loan technician at 877-827-3702 for more details.
How can I learn more about this program?
Contact your loan servicer. If you’re having trouble making payments, they’ll determine if VASP or any other option will help. If you’re not sure who your servicer is, check your most recent mortgage bill. If you can’t find their contact information, call us at 877-827-3702 and select 4. We’re here Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.