Behind on Your VA Mortgage? A New Foreclosure Prevention Program Launches June 15

Veterans who have spent the past year waiting for a replacement after the Department of Veterans Affairs ended its Veterans Affairs Servicing Purchase program, known as VASP, may finally have the answer they’ve been waiting for.

Beginning June 15, mortgage servicers can begin submitting eligible loans through the VA’s new Partial Claim Program, a foreclosure-prevention tool authorized by Congress to help certain borrowers with delinquent VA-backed mortgages.

The launch follows more than a year of uncertainty for Veterans who fell behind on their mortgage payments after VASP stopped accepting new submissions in May 2025. During that time, homeowners facing financial hardship often had fewer options available to help bring their loans current and avoid foreclosure.

For borrowers already struggling to catch up on missed payments, time matters. Mortgage delinquency can trigger late fees, damage credit, and move a loan closer to foreclosure.

Why Veterans Have Been Waiting For This Program

The Partial Claim Program became possible after Congress passed the VA Home Loan Program Reform Act, restoring the department’s authority to operate a permanent partial claim program for eligible borrowers. The debate over what would replace VASP continued for months after the program ended.

Launched in 2024, VASP allowed the VA to purchase certain distressed loans from mortgage servicers and modify them. When announcing VASP, the VA said the program was intended to help Veterans “avoid foreclosure and stay in their homes.”

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The Partial Claim Program is the VA’s next major foreclosure-prevention tool for borrowers who meet eligibility requirements.

Who May Be Eligible

The program is intended for certain Veterans and service members with VA-guaranteed home loans who are experiencing mortgage hardship or delinquency.

Under VA guidance, borrowers generally must demonstrate they can resume and maintain their monthly mortgage payments after assistance is provided. The property must typically serve as the borrower’s primary residence.

Qualification is determined through the loan-servicing process and depends on both program requirements and the borrower’s financial circumstances. Not every Veteran with a delinquent mortgage will qualify, and the VA has not indicated that the program will resolve every foreclosure case currently underway.

How the Program Works

Qualifying mortgage arrears may be placed into a subordinate lien while the primary mortgage is brought current. Unlike VASP, the new program does not involve the VA purchasing the loan from the mortgage servicer.

For homeowners who fell behind during a period of financial hardship, the challenge is often catching up on missed payments before foreclosure timelines advance.

The Partial Claim Program gives servicers another tool to help some borrowers catch up on missed payments and potentially avoid foreclosure. The specific terms of any assistance remain subject to VA requirements and servicer review.

What Veterans Should Do Now

Veterans experiencing financial hardship do not need to wait until June 15 to seek help. The VA advises borrowers who are struggling to make mortgage payments to contact their loan servicer as early as possible and explore available loss-mitigation options.

Homeowners should gather mortgage statements, payment histories, hardship documentation, and lender correspondence before discussing available assistance programs. Borrowers can also contact the VA Loan Guaranty Service for additional guidance about foreclosure-prevention options and available resources.

Although the program officially launches on June 15, implementation may vary among mortgage servicers as they complete operational requirements and integrate the new process into their systems.

Why the VA Partial Claim Program Matters

For many Veterans, the significance of June 15 is not the policy change itself. It is the possibility of having another foreclosure-prevention option available after more than a year without a replacement for VASP.

During that gap, Veterans organizations, housing advocates, lenders, and lawmakers repeatedly pushed for a long-term solution that could help eligible borrowers who had fallen behind on their mortgage payments.

The program is unlikely to help every Veteran currently facing foreclosure. Eligibility requirements still apply, and some homeowners may already be too far into the foreclosure process to benefit from the new option. For Veterans already behind on their mortgage, waiting rarely improves the situation. The sooner a borrower contacts a servicer, the more likely it is that foreclosure-prevention options remain on the table.