Protecting VA Borrowers: New Measures to Prevent Foreclosure

As a veteran, your service to our country is invaluable, and ensuring that you have a secure home is a top priority. The Department of Veterans Affairs (VA) has recently introduced significant protections to help veterans like you avoid foreclosure, even during financial hardship.

What’s New? The VASP Program and Foreclosure Moratorium

The VA has announced a targeted foreclosure moratorium on VA-guaranteed loans, which is in effect until December 31, 2024. This moratorium is part of a broader effort to provide additional time for mortgage servicers to implement the Veterans Affairs Servicing Purchase (VASP) program. The VASP program is designed as a last-resort option to help veterans who are facing foreclosure by allowing the VA to purchase and modify delinquent loans, making them more affordable.

Who Qualifies for VASP?

To be eligible for the VASP program, you must meet the following criteria:

• Your loan must be 3 to 60 months delinquent.
• The property must be occupied by you or an immediate family member.
• You must have resolved the cause of your loan default and have the ability to resume regular payments.
• You and any co-borrowers must have a stable and reliable income.
• Your VA loan must be in the first lien position, with no other liens that could jeopardize this status.

If you meet these criteria, your loan servicer may submit your loan for consideration under the VASP program.

Exceptions to the Moratorium

While the moratorium is comprehensive, there are certain exceptions where foreclosure can still proceed:

• The property is vacant or abandoned.
• The borrower no longer wishes to retain ownership of the home.
• All home retention options, including VASP, have been evaluated and deemed unworkable.
• The borrower is unresponsive for more than 210 days after their last payment.

How to Get Started

If you’re struggling with your mortgage payments, it’s crucial to take action early. Start by contacting your loan servicer to discuss your situation. They will evaluate your eligibility for the VASP program and other foreclosure avoidance options. Remember, VASP is not a program you can apply for directly; your servicer must submit your information if they determine it’s the best option for you.

Contacting the VA

For direct assistance, you can reach out to the VA Loan Guaranty Service at 877-827-3702. Select option 4 to speak with a loan technician. You can also visit the VA Housing Assistance website for more details or locate your nearest VA Regional Loan Center.

Call to Action

Navigating the complexities of VA loans and foreclosure prevention can be daunting, but you don’t have to do it alone. If you’re a veteran in the Colorado Springs area and need help understanding your options or require assistance with your VA loan, I’m here to help. Contact me today to ensure you’re taking the right steps to protect your home.

Contact Information:

• Phone: 719-922-0102
• Email: [email protected]
• Website: NicoleStromRealtor.com
• LinkedIn: NicoleStromRealtor
• Instagram: Nicole Strom Realtor
• Facebook: Colorado Springs Realtor

Your service deserves the best protection. Let’s work together to keep your home safe.