A VA program launched last month will offer another option for veterans facing foreclosure by allowing the department to pay mortgage servicers directly to prevent a default.

Veterans who qualify for the VA Partial Claim Program will be placed on a three-month payment plan by their mortgage servicer to determine whether they can stay current on their loan. If they complete the program, the servicer pays the overdue amount of the mortgage for the veteran, and the VA pays the servicer the same amount. The veteran would repay the VA after the loan is paid off or refinanced, or after the property is sold.

Full details on the program are available at the VA website. The program launched last month after being authorized by the VA Home Loan Reform Act in July 2025, according to a VA news release.

Other Foreclosure Assistance

About 173,000 veterans received some type of foreclosure-prevention assistance from the VA in 2025, per the release. These programs include:

• Restructured payments or other loan modifications.
• Special forbearance, allowing veterans more time to make up missed payments.
• Sale assistance, including additional time to arrange a sale and short sale options.
• Financial counseling services – available to all veterans and surviving spouses, even if their loan is not VA-backed.

Veterans with VA loans that are 61 or more days overdue will be assigned a VA loan technician.

Learn More, and Stay Safe

Contact a VA loan technician directly at (877) 827-3702 with questions about foreclosure-avoidance programs. Those with VA-backed loans can learn more about the program via the Loan Guaranty support portal.

The VA and Consumer Financial Protection Bureau have warned homeowners, especially those facing payment problems, of loan-refinance scams. Learn more about these offers at the VA website, and learn more about avoiding these scams and others at MOAA.org/Scams.