Without VASP, veterans don’t have a foreclosure safety net
By: Sarah Wolak | Published: 2025-06-20 20:11:00 | Source: www.housingwire.com
VASP was started in 2024 under the Biden administration with the purpose of being a last-resort program that offered new, low-interest rate mortgages for veterans and service members who fell behind on their loans. According to the VA, the widely criticized program helped more than 33,000 veterans during the past year.
Now, as VASP has no backup and mortgage rates remain near 7%, the only other option besides VASP is to take out a loan modification, which could mean increased payments that put veterans in foreclosure and force them to sell.
Fannie Mae, Freddie Mac and Federal Housing Administration mortgages all have emergency options for delinquent borrowers that don’t involve an increased interest rate or monthly payment.
NPR reported Thursday that it has heard from more…
