"VA's Last Resort Program Saves 40K Veterans from Foreclosure"
The Department of Veterans Affairs is set to launch the Veterans Affairs Servicing Purchase (VASP) program on May 31, 2024, aiming to assist over 40,000 Veterans facing severe financial hardship in avoiding foreclosure and retaining their homes. Through VASP, VA will purchase defaulted VA loans from mortgage servicers, modify the loans, and place them in the VA-owned portfolio as direct loans, offering a fixed 2.5% interest rate to eligible borrowers. The program is part of VA's efforts, along with the Biden-Harris Administration, to prevent foreclosures for Veterans and their families, with an anticipated government subsidy spending reduction of approximately $1.5 billion from 2024 to 2033.