🛡️ VASP Is Gone: What This Means for VA Loan Holders & Your Next Moves

If you’re on a VA loan and financially struggling, there’s some serious news: the Veterans Affairs Servicing Purchase (VASP) program is officially ended as of May 1, 2025. That means no new enrollments, and active participants have until August 31, 2025, to complete trial payment plans—but after September 30, 2025, VASP payments will cease.

⚠️ Why VASP Disappeared

VASP was launched in May 2024 as a “last-resort” tool—VA purchased defaulted loans and reissued them at fixed 2.5% interest, allowing veterans to avoid foreclosure.By the time it shut down, more than 17,000 veterans had secured help—and analysts warn that without a replacement, up to 58,000 could face foreclosure. Industry groups are calling it a “bedrock tool” that’s gone too soon.

🛠️ What You Can Do Now

If you missed the May 1 deadline (or are enrolled but still not fully approved), don’t panic—but act fast. Here’s the roadmap:

Immediately Contact Your Loan ServicerReach out ASAP. VA loan technicians get assigned at 60+ days past due, and they can help evaluate your loss-mitigation options.

Understand the VA Loss-Mitigation WaterfallVA-owned waterfall officially rescinded May 1. Servicers now must tailor a solution to your situation using the best available options under Chapter 5 of the VA Servicer Handbook.

Explore These Core Options

• Repayment Plan – Spread out missed payments.

• Special Forbearance – Temporary break, then resume payments.

• Loan Modification – Adjust terms and balance.

• Extra Time for Private Sale – Avoid foreclosure by selling.

• Short Sale – Lender accepts sale proceeds even if less.

• Deed-in-Lieu of Foreclosure – Turn in the house, no foreclosure hit.

Tap Free VA Counseling

A VA loan technician can help—or you can connect with accredited housing counselors or organizations like Military OneSource or your local VSO.

Legislative Fix on the Way?

Congress is debating a Permanent Partial-Claim Program to fill the VASP gap. It won’t be instant—but advocacy is underway.

✅ Don’t Wait—Here’s Why

With VASP gone, VA borrowers don’t have the unique safety net they used to. But you still have paths to avoid foreclosure—and you’re not alone. Act early, and connect with professionals who can help negotiate and navigate complex paperwork.

🙋‍♀️ Work With a Pro Who Gets It

Whether you’re deep in VA mortgage chaos or just need a plan B, I’ve guided dozens of vets and surviving spouses through these exact scenarios—especially here in Texas. Other agents talk. I deliver.

📞 Let’s schedule a zero-pressure strategy session—I’ll help you or your client understand the steps, legal deadlines, and options tailored to your home and finances.

Let’s keep our veterans safe in their homes—on your terms.