Published: May 2024

Request for a seven-month extension of VA foreclosure pause

Nearly three dozen consumer and housing advocacy organizations signed on to a letter to the Department of Veterans Affairs (VA) urging the agency to extend the foreclosure pause of VA-guaranteed loans from May 31, 2024, to December 31, 2024.

Consumer Action was among nearly three dozen consumer and housing advocacy organizations signed on to a letter to the Department of Veterans Affairs (VA) urging the agency to extend the foreclosure pause of VA-guaranteed loans from May 31 to December 31, 2024, so that veterans have the opportunity to access the new VA Servicing Purchase (VASP) program—a remedy of last resort for VA mortgage borrowers whose loan servicer has determined no other option exists to help them avoid foreclosure. While the VASP program officially launches on May 31, 2024, it is expected that some servicers will not offer it until Oct. 1. Without extending the foreclosure pause, there is a real risk that some of the 40,000 veterans and their families who the VA estimates could keep their homes under the new program will end up in foreclosure because there was a gap between the end of the pause and their servicer’s implementation of the VASP program. 

Lead Organization

National Consumer Law Center

More Information

Read the letter here.

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