VA Calls for Extension of Veteran Foreclosure Moratorium through Dec. 31, 2024
Industry Update
May 29, 2024
Source: U.S. Department of Veterans Affairs
The Department of Veterans Affairs issued guidance to strongly encourage mortgage servicers to implement a targeted moratorium on foreclosures for Veterans with VA-guaranteed loans through December 31, 2024. This will help Veterans and their families stay in their homes beyond the end of the current foreclosure moratorium, which will end on May 31.
This new, targeted foreclosure moratorium will help ensure that Veterans and their families are able to stay in their homes while mortgage servicers implement the Veterans Affairs Servicing Purchase (VASP) program – a new, last-resort tool for qualified Veterans experiencing severe financial hardship. Through VASP, VA will purchase qualified Veterans’ modified loans from their loan servicers and then place them in the VA-owned portfolio as direct loans – making the loans more affordable for Veterans. VASP officially launches on May 31 and mortgage servicers must have it fully implemented by October 1, 2024.
Veterans facing financial hardship should contact their mortgage servicer and work with them to explore all available home retention options. For additional assistance, Veterans can always contact VA directly by calling 877-827-3702, option 4, or by visiting the VA Home Loans website for additional information.
“When a Veteran falls on hard times, we work with them and their loan servicers every step of the way to help prevent foreclosure, including offering repayment plans, loan modifications, and more,” said Under Secretary for Benefits Josh Jacobs. “We’re calling on mortgage servicers to follow a targeted foreclosure moratorium so we can make sure that Veterans get the support they need to stay in their homes.”
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