Abrupt End of Program to Help Veterans Avoid Foreclosure Leaves Them at Risk of Home Loss
WASHINGTON – Today, advocates at the National Consumer Law Center (NCLC) and the National Fair Housing Alliance, and members of the House Committee on Veterans’ Affairs gathered in the House Triangle to urge the Department of Veterans Affairs (VA) to immediately restore the Veterans Affairs Servicing Purchase (VASP) program.
“The Administration’s abrupt cancellation of the VASP mortgage assistance program, for Veteran borrowers in need, puts tens of thousands of Veteran families with VA home loans at risk of losing their homes. The VA Home Loan Program is a benefit that Veterans have earned through service and sacrifice to give them housing stability,” said Alys Cohen, senior attorney at NCLC and proud daughter of an Air Force Veteran in a statement provided at the event.
Last year, the VA launched the VASP program to help more than 40,000 Veterans experiencing severe financial hardship avoid foreclosure and stay in their homes. At the time, the VA announced it would do “everything in our power to help Veterans avoid foreclosure.” But on May 1, 2025, the VA discontinued the VASP program, ending the only mortgage assistance option designed to help Veteran homeowners obtain an affordable payment when they are delinquent on their mortgage. The end of the program comes as reports indicate VA foreclosures are already at a 5-year high.
“The termination of VASP results in Veteran borrowers having substantially worse options than other borrowers with federally backed mortgage loans. As a result, Veterans with VA mortgages will face preventable foreclosures. The end of VASP leaves more than 58,000 Veterans and their families vulnerable to foreclosure,” Cohen added.
Advocates also called on the VA to examine its authority and implement any additional relief to protect Veterans’ homes right now. They also urged Congress to quickly pass legislation to restart a partial claim program for Veterans facing hardship.
“We are committed to working with Congress on establishing a new hardship program,” said Cohen. “But simply cancelling VASP without a replacement will throw tens of thousands of Veterans out of their homes.”
Related Resources
- Press release: Abrupt End of VASP Program Leaves Veterans, Families at Risk of Home Loss, May 1, 2025
- Joint Letter Regarding Veterans Affairs Servicing Purchase, January 17, 2025
- Press release: New VA Program to Provide Home Loan Assistance to Active-Duty Servicemembers and Veterans, April 10, 2024
- Press release: Veteran Borrowers Need More Options to Retain their Homes and Avoid Foreclosure, February 15, 2024
- Joint Industry Advocacy Letter on the Veterans Assistance Servicing Purchase Program, December 14, 2023
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