WASHINGTON, D.C. — The Department of Veterans Affairs has launched a new foreclosure-prevention program aimed at helping financially distressed veterans remain in their homes, implementing authority granted under legislation signed into law last year.
The VA Partial Claim Program allows eligible veterans who have fallen behind on mortgage payments to cure loan delinquencies through a structured repayment process involving mortgage servicers and the federal government.
The initiative follows enactment of the VA Home Loan Reform Act, which President Donald Trump signed on July 30, 2025. The program is designed to provide an additional home-retention tool for veterans facing financial hardship as housing affordability and mortgage costs remain under pressure nationwide.
Under the program, mortgage servicers will identify veterans in default who may qualify for assistance and place them on a three-month trial payment plan. Veterans who successfully complete the trial period can have their delinquent mortgage balance brought current through payments made by their servicer.
VA then reimburses the servicer for the amount advanced. The servicer repays VA when the mortgage is paid off, refinanced, or the property is sold.
“We are grateful to Congress and President Trump for creating VA’s Partial Claim Program, which will help keep thousands of Veterans in their homes,” VA Secretary Doug Collins stated.
The new program joins several existing VA foreclosure-avoidance options, including repayment plans, traditional loan modifications, 30-year and 40-year loan modifications, and disaster-related modification programs.
According to the department, VA worked with mortgage servicers to help approximately 173,000 veterans avoid foreclosure during fiscal year 2025.
Veterans experiencing difficulties with their mortgage servicer can contact VA at 877-827-3702, option 6.
Additional information about the VA Partial Claim Program and VA home loan benefits is available through the Loan Guaranty Service at https://www.benefits.va.gov/homeloans/index.asp.
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