VA Introduces New Program to Protect Veterans from Home Foreclosure
The Department of Veterans Affairs (VA) has officially launched the VA Partial Claim Program, a new foreclosure-prevention initiative designed to help veterans facing financial hardship stay in their homes.
Authorized by the VA Home Loan Reform Act signed into law in July 2025, the program provides a structured path for struggling homeowners to get current on their mortgages without losing their homes or altering their original loan terms.
How the Partial Claim Program Works
The new program acts as a vital safety net for those with VA-backed loans. Rather than pushing veterans toward immediate foreclosure, the program follows a clear, multi-step process:
- Identification: Mortgage servicers identify veterans who are currently in default and assess if they qualify for the Partial Claim Program.
- Trial Period: Qualified veterans are placed on a three-month trial payment plan to demonstrate their ability to maintain their regular mortgage payments.
- Bringing the Loan Current: Upon successful completion of the trial period, the mortgage servicer pays the overdue amount, bringing the veteran's loan entirely current.
- VA Reimbursement: The VA then reimburses the mortgage servicer for that exact amount.
- Repayment: The advanced amount is recorded as a subordinate lien. The servicer must repay the VA only when the loan is fully paid off, the home is refinanced, or the property is sold.
“This program will help keep thousands of veterans in their homes,” said VA Secretary Doug Collins, emphasizing the department's ongoing commitment to housing stability.
Expanding Home Retention Options
The Partial Claim Program joins a suite of existing VA options designed to help veterans avoid foreclosure. In fiscal year 2025 alone, the department successfully worked alongside mortgage servicers to prevent foreclosure for over 173,000 veterans.
Other available home retention tools include:
- Repayment Plans
- VA Traditional Loan Modifications
- 30-Year and 40-Year Loan Modifications
- VA Disaster Modifications and Disaster Extend Modifications
Veterans who are currently struggling to reach a resolution with their mortgage servicer are highly encouraged to proactively contact a VA loan technician by calling 877-827-3702 (option 6). More detailed information regarding the Partial Claim Program and general VA home loans is available directly through the VA’s Loan Guaranty Service website.
Since the inception of the home loan guaranty program, the VA has helped secure more than 29 million homes for veterans, service members, and survivors — including over 500,000 new guaranteed home loans in fiscal year 2025 alone.
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