VA Loan Foreclosure Help Explained

If you cannot make payments on a VA-backed loan, the VA has a loss-mitigation ladder. Call your servicer and the VA before you miss payments, not after — most of these options work better the earlier they start.

The options:

  • Special forbearance — extra time to repay what you have missed, without extending the loan term.
  • Repayment plan — the missed amounts added to your regular monthly payments.
  • VA traditional loan modification — arrears folded into the loan balance.
  • 30-year modification — resetting the term where that lowers the monthly payment.
  • VA partial claim — the VA pays your missed payments to bring the loan current, and you repay it when you sell or pay off the loan.
  • 40-year modification — extending the term further.

Where none of those work, a short sale, a deed-in-lieu, or an arranged private sale are alternatives to foreclosure.

The program situation has changed, and stale guidance here is dangerous. VASP — the Veterans Affairs Servicing Purchase program — stopped accepting submissions on May 1, 2025, with no payments issued after September 30, 2025. It is closed. The Partial Claim Program replaced it and is open for submissions.

But here is the practical catch: servicers have until November 28, 2026 to add partial claims to their systems. So the option exists in policy and your servicer may not be able to process it yet. If you are told it is unavailable, that may be true of that servicer today and not of the program.

Who is eligible?

Borrowers with a VA-guaranteed loan facing financial hardship. The options are not all open to everyone — which one fits depends on the nature of the hardship, how far behind you are, and whether it is temporary or permanent.

The partial claim has a specific prerequisite: you must complete a 3-month trial payment plan first, showing you can pay on time for three consecutive months.

The most useful thing to know is that you have a second line of contact. Beyond your servicer, the VA has loan technicians who can advocate for you and discuss which option suits your situation. That is a free resource and it is under-used — a servicer's first answer is not necessarily the VA's position.

How do I apply?

  • Call before you default: Options are wider and cheaper the earlier you start. Waiting until foreclosure has begun narrows them sharply.
  • Call a VA loan technician as well as your servicer: They can advocate on your behalf, and they know what the servicer should be offering.
  • Ask specifically about the partial claim: If told no, ask whether that is the program or the servicer's implementation — they have until November 28, 2026.
  • Expect a 3-month trial payment plan for a partial claim: You have to demonstrate three consecutive on-time payments first.
  • Ignore anything referencing VASP: It closed to submissions on May 1, 2025. Guidance mentioning it is out of date.
  • Do not pay a foreclosure-rescue company: The VA and HUD-approved counselors do this free, and rescue scams target exactly this moment.

Common questions

Is VASP still available?

No. The Veterans Affairs Servicing Purchase program stopped accepting submissions on May 1, 2025 and issued no payments after September 30, 2025. The Partial Claim Program replaced it.

What is a VA partial claim?

The VA pays your missed payments to bring the loan current, and you repay that amount when you sell the home or pay off the loan. You must complete a 3-month trial payment plan first.

My servicer says partial claims aren't available — is that right?

It may be true of that servicer. Servicers have until November 28, 2026 to add partial claims to their systems, so the program can exist while your servicer cannot yet process it.

What options are there besides a partial claim?

Special forbearance, a repayment plan, a VA traditional loan modification, a 30-year or 40-year modification, and — where none work — a short sale, deed-in-lieu or arranged private sale.

Should you pay a company to help avoid foreclosure?

No. VA loan technicians and HUD-approved housing counselors help free, and this is a moment foreclosure-rescue scams target.

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