VA Partial Claim Program: How South Florida Veterans Can Avoid Foreclosure
If you’re a Veteran worried about falling behind on your mortgage, there’s new help on the way, and it’s worth knowing about before things get harder than they need to be.
The Department of Veterans Affairs just formally launched the VA Partial Claim Program, a new option built specifically to help Veterans facing financial hardship avoid foreclosure and stay in their homes. As someone who works with Veteran and military buyers through Compass Military Division, this is exactly the kind of update I want my clients, and my community, to hear directly from me, not buried in an inbox.
What the VA Partial Claim Program Is
The Partial Claim Program is authorized under the VA Home Loan Reform Act, signed into law in July 2025. In plain terms: it gives VA a way to step in and cover a Veteran’s overdue mortgage payments, so they can get current on their loan without losing their home.
How It Works
- Mortgage servicers identify Veterans who are in default and may qualify
- Qualified Veterans are placed on a three-month trial payment plan
- If the Veteran completes the trial successfully, the servicer pays the overdue amount to bring the loan current
- VA then reimburses that amount to the servicer
- The servicer is repaid by VA when the loan is paid off, refinanced, or the home is sold
No extra debt piled onto the Veteran’s shoulders in the short term — just a path back to current.
Who Qualifies
This program runs through your mortgage servicer, not VA directly. If you’re a Veteran behind on payments, the first step is a conversation with your servicer about whether you meet the criteria for the trial period.
Other VA Home Retention Options
The Partial Claim Program joins a handful of existing tools VA already uses to help Veterans stay in their homes, including repayment plans, VA traditional loan modifications, 30-year and 40-year loan modifications, and VA disaster modifications. VA reports it worked with servicers to help 173,000 Veterans avoid foreclosure in fiscal year 2025 alone, this new program adds one more tool to that effort.
Why the VA Partial Claim Program Matters
For many Veterans, falling behind on mortgage payments doesn’t happen overnight. A job change, medical expenses, military transition, or unexpected financial hardship can quickly make it difficult to keep up with monthly payments. The VA Partial Claim Program provides an opportunity to recover without immediately facing foreclosure or having to refinance into a new loan.
One of the biggest advantages of this program is that it gives eligible homeowners time to stabilize their finances while keeping their existing mortgage in good standing. By working with your mortgage servicer early, you may be able to avoid more serious financial consequences and protect the equity you’ve built in your home.
If you’re unsure whether this program applies to your situation, don’t wait until the problem becomes more difficult to solve. Speaking with your mortgage servicer as soon as possible can help you understand the options available and determine the best path forward.
If You’re a Veteran Homeowner Struggling Right Now
You don’t have to wait for a letter in the mail to start this conversation. If you’re behind on payments or worried you might fall behind, reach out to your mortgage servicer directly, or call VA at 877-827-3702, option 6.
And if you’re a Veteran in South Florida wondering what your options look like, whether that’s working through a hardship now or just understanding your VA loan benefit for the future, I’m always happy to talk it through. This is the kind of thing I want my Veteran clients to feel comfortable asking about, no pressure, no jargon.
If you’d like to learn more about buying or selling a home in South Florida, visit our Home Buying Resources page.
Celia Ruiz | Broker Associate | The Hoff Group at Compass | Compass Military Division
