For most families, a home is more than an entry on a financial statement. It is where children were raised, where holidays were celebrated and where decades of memories accumulated. For an older veteran, the home may also represent stability, independence and the largest asset that he or she has managed to preserve.
That is why falling behind on a mortgage can become so frightening so quickly.
A temporary financial setback can happen for any number of reasons. A veteran may lose a job, experience a serious illness, face an unexpected increase in household expenses or begin helping a spouse whose care needs have changed. An older homeowner may have enough income to resume making the regular mortgage payment but still have no realistic way to come up with several months of missed payments all at once.
The United States Department of Veterans Affairs has now launched a new program intended to address that particular problem.
The VA Partial Claim Program became available in June 2026 as an additional foreclosure-prevention option for qualifying homeowners with VA-guaranteed mortgages. The basic idea is fairly straightforward: when a veteran has fallen behind but can once again afford the regular monthly payment, the program may allow the delinquent amount to be moved out of the immediate mortgage balance so that the loan can be brought current.
That could be the difference between keeping the home and losing it.
It is also important, however, to understand what the program does not do. It does not erase the missed payments, it is not automatically available to every veteran with a mortgage, and it does not eliminate the need to communicate with the mortgage servicer. Veterans who wait until a foreclosure sale is approaching may have fewer options than those who seek help as soon as they recognize that there is a problem.
What Is a Partial Claim?
When a homeowner falls behind on a mortgage, the problem is not always the regular monthly payment.
Consider a veteran who misses six payments while recovering from an illness. Once the veteran returns to work or begins receiving another source of income, the normal mortgage payment may once again be affordable. The difficulty is that the mortgage company may also demand the six missed payments, together with any fees or other permitted expenses.
Being able to afford $2,000 per month does not mean that someone can suddenly produce $12,000 or more to cure the delinquency.
Under the new partial claim process, the mortgage servicer identifies a potentially eligible veteran who is in default. The veteran must then successfully complete a three-month trial payment plan, demonstrating an ability to make the regular payments on time. Once the trial is completed, the mortgage servicer pays the overdue amount necessary to bring the original mortgage current, and the VA reimburses the servicer for that amount.
The partial claim is not a gift. The amount advanced still has to be repaid. Under the VA’s description of the program, repayment is generally triggered when the original mortgage is paid off, refinanced or the property is sold.
In practical terms, the past-due amount is separated from the immediate payment problem. The veteran resumes making the regular mortgage payments, while the partial claim balance remains to be addressed later.
Why Keeping the Original Mortgage May Matter
One of the most important features of the program is that it may allow a veteran to become current without changing the basic terms of the existing mortgage.
That can be especially valuable for a homeowner who obtained a low interest rate several years ago.
A traditional loan modification generally adds the missed payments and certain related costs to the mortgage balance and creates a revised payment schedule. Depending on the available modification terms and current interest rates, the resulting payment may not be lower. The VA itself warns that a modified payment could increase because of rising interest rates.
A veteran with a three-percent mortgage does not necessarily benefit from replacing or restructuring that loan at a substantially higher rate. Even when a modification prevents an immediate foreclosure, the new monthly payment still has to be affordable for the arrangement to work.
The partial claim addresses a somewhat different situation. It is aimed at homeowners who can manage their ongoing mortgage but cannot cure the accumulated arrears.
That distinction matters. There is no single foreclosure-prevention solution that works for everyone. A homeowner whose income has permanently declined may need a modification that reduces or restructures the payment. A homeowner who experienced a temporary interruption in income may need a way to deal with the missed payments without disturbing an otherwise manageable loan.
The partial claim is designed to fill that second need.
Eligibility Is Not Automatic
A veteran cannot simply apply directly to the VA, receive a check for the missed payments and declare the mortgage current.
The process begins with the mortgage servicer—the company that collects the monthly mortgage payment. The servicer evaluates the loan, reviews the homeowner’s circumstances and determines which foreclosure-avoidance options may be available.
To obtain a partial claim, the veteran must successfully complete the three-month trial payment plan. That requirement is intended to demonstrate that, once the arrears are addressed, the homeowner can remain current going forward.
This is a significant part of the program because it means that the partial claim will not solve every case.
A homeowner who cannot afford the regular payment may not be able to complete the trial period. In that situation, another option may be more appropriate, including a loan modification, repayment arrangement, sale of the property or another negotiated resolution.
The program also applies to VA-guaranteed loans. A person’s status as a veteran does not, by itself, mean that every mortgage on that person’s home is governed by the program.
However, veterans and surviving spouses may still be able to receive VA foreclosure counseling even when the loan is not VA-guaranteed. The VA states that it provides counseling to veterans and surviving spouses regardless of whether the mortgage itself carries a VA guaranty.
The Program May Not Be Immediately Available Through Every Servicer
Although the VA has formally launched the Partial Claim Program, mortgage servicers have been given until November 28, 2026, to implement it within their systems.
That creates a potential source of confusion.
A veteran may hear that the program is now open, call the mortgage company and be told that the servicer is not yet processing partial claims. That does not necessarily mean the homeowner is ineligible. It may mean that the company has not finished implementing the procedures required to offer the program.
At the same time, a homeowner should not simply wait until November and allow the mortgage delinquency to grow.
The servicer should still review the veteran for other available loss-mitigation options. The VA identifies several possible approaches, including repayment plans, special forbearance, traditional loan modifications, 30-year and 40-year modifications, disaster-related modifications, additional time to arrange a private sale, a short sale and a deed in lieu of foreclosure.
The right option depends on the homeowner’s income, the reason for the delinquency, the value of the property, the interest rate on the existing loan and whether the family’s long-term goal is to remain in the home.
Veterans Should Not Wait for the Situation to Become an Emergency
One of the worst mistakes a homeowner can make is to ignore correspondence from the mortgage company.
People often avoid opening letters when they know the news will be bad. They may feel embarrassed, assume that nothing can be done or believe that they will catch up next month. By the time they finally ask for help, legal fees may have been added and the foreclosure process may already be underway.
The VA recommends contacting the mortgage servicer immediately when payment problems arise. For a VA-guaranteed loan that becomes 61 days past due, the VA says it will automatically assign a loan technician to review the mortgage. Veterans may also contact the VA before that point to discuss their options.
Early communication is important because many foreclosure-prevention programs require financial documentation, a review of income and expenses and sufficient time to process the request. Missing paperwork or unanswered letters can delay the review.
A veteran who receives a foreclosure notice should not assume that calling the mortgage company once is enough. Keep records of every conversation, including the date, the name of the representative and what was discussed. Save copies of all financial documents submitted to the servicer and request written confirmation that the materials were received.
When possible, involve a trusted family member, attorney or financial adviser before the matter becomes unmanageable.
Be Careful of Foreclosure Rescue Scams
Financial distress makes homeowners vulnerable to people who promise a quick solution.
A company may claim that it has a special relationship with the VA, that it can guarantee approval for a modification or that the homeowner must pay a large upfront fee before assistance can begin. Others may instruct the veteran to stop communicating with the mortgage servicer or to send mortgage payments to the company instead.
Those are serious warning signs.
The VA specifically cautions veterans who are behind on their mortgages to work with the VA, the loan servicer and trusted organizations rather than third-party companies seeking to take advantage of the situation.
No legitimate company can guarantee that a particular foreclosure-prevention request will be approved. A homeowner should be extremely cautious before signing documents transferring an interest in the property, granting broad authority over the home or promising a future share of the equity.
A veteran who is unsure whether an offer is legitimate should contact the VA or obtain independent legal advice before signing anything.
The Home Must Still Fit the Family’s Long-Term Plan
Preventing foreclosure is important, but it is not always the end of the analysis.
For an older veteran, the family should also consider whether remaining in the home is financially and physically sustainable. Can the homeowner continue paying the mortgage, property taxes, utilities, insurance and maintenance? Is the house accessible if the veteran’s mobility declines? Will a spouse be able to remain there if the veteran enters a nursing facility or passes away?
A partial claim may solve the immediate delinquency without answering any of those broader questions.
The existence of a repayment obligation should also be considered when planning for the eventual sale or transfer of the home. Because the partial claim must generally be repaid when the mortgage is paid off, refinanced or the property is sold, the amount will affect the equity ultimately available to the homeowner or the estate.
That does not make the program a bad option. Keeping a family in its home may be well worth the future reduction in equity. It simply means that the partial claim should be understood as deferred debt rather than debt forgiveness.
For veterans engaged in estate planning or long-term care planning, the mortgage, partial claim and overall value of the property should all be included in the discussion. A trust or deed cannot eliminate a valid mortgage obligation, and transferring real estate without considering the loan terms can create additional problems.
A Valuable New Option, but Not a Reason to Delay
According to the VA, it worked with mortgage servicers to help approximately 173,000 veterans retain their homes and avoid foreclosure during fiscal year 2025. The new Partial Claim Program adds another tool to that foreclosure-prevention system.
For a veteran who has recovered from a temporary financial setback and can once again afford the monthly payment, the program could provide exactly the breathing room needed to save the home.
But the program works best when the homeowner acts early.
Open the mail. Contact the mortgage servicer. Provide the requested documents. Ask specifically whether the loan is being evaluated for the VA Partial Claim Program and what other options are available. When answers are unclear or the process stalls, contact a VA loan technician for assistance.
A mortgage problem does not become easier by being ignored. With the introduction of the partial claim, more veterans may now have a realistic path back to a current loan—but they still have to begin the process while there is time to use it.
Talk it through with Nicole Ott, our Lead Intake Coordinator. No charge, no pressure.