FAILED and will be cancelled VASP
The VA forbearance assistance program, known as VASP, is set to end on May 1.
This change means that lenders will be permitted to begin foreclosure proceedings against Veterans who are behind on their mortgage payments.
Estimates suggest that between 10,000 and 50,000 VA loans may become delinquent. Notably, 18,000 loans have already gone through the VASP process.
Understandably, the federal government is eager to avoid a potential public relations crisis stemming from mass foreclosures on Veterans.
One practical solution to bridge the gap between the expiration of VASP and the introduction of a new federal initiative would be for individual states to implement temporary foreclosure moratoriums. For this approach to be effective, states would need to coordinate their efforts and work toward a unified response.
In the absence of a federal safety net following the expiration of the VA forbearance assistance program (VASP), a coordinated, state-level foreclosure moratorium offers the most immediate and practical stopgap to prevent a wave of foreclosures on Veterans.
Without such intervention, tens of thousands of Veterans could face foreclosure, creating both a housing crisis for affected individuals and a significant reputational risk for the government.
Therefore, swift and unified state action is critical to maintaining stability until a new federal solution is in place.
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The VA forbearance assistance program, known as VASP, is set to end on May 1.
This change means that lenders will be permitted to begin foreclosure proceedings against Veterans who are behind on their mortgage payments.
Estimates suggest that between 10,000 and 50,000 VA loans may become delinquent. Notably, 18,000 loans have already gone through the VASP process.
Understandably, the federal government is eager to avoid a potential public relations crisis stemming from mass foreclosures on Veterans.
One practical solution to bridge the gap between the expiration of VASP and the introduction of a new federal initiative would be for individual states to implement temporary foreclosure moratoriums. For this approach to be effective, states would need to coordinate their efforts and work toward a unified response.
In the absence of a federal safety net following the expiration of the VA forbearance assistance program (VASP), a coordinated, state-level foreclosure moratorium offers the most immediate and practical stopgap to prevent a wave of foreclosures on Veterans.
Without such intervention, tens of thousands of Veterans could face foreclosure, creating both a housing crisis for affected individuals and a significant reputational risk for the government.
Therefore, swift and unified state action is critical to maintaining stability until a new federal solution is in place.
Subscribe to: