Mortgage Trouble? Don’t Wait
Helping VA Borrowers understand their options, avoid foreclosure, and protect homeownership.
HOW VAREP CAN HELP
- Explain available foreclosure prevention options.
- Help gather and submit required documents.
- Communicate with your mortgage servicer.
- Monitor the status of assistance requests.
- Advocate for clear communication and timely review.
WHAT VAREP CANNOT DO
- Approve or deny loss mitigation options.
- Require a servicer to offer a specific solution.
- Stop foreclosure proceedings.
- Provide legal advice or legal representation.
- Override decisions made by your servicer, lender, VA, or investor.
| Option | Description | Generally Best For |
|---|---|---|
| Repayment Plan | Allows the borrower to repay past-due amounts over time while continuing to make the regular monthly mortgage payment. |
Borrowers who can afford their regular mortgage payment plus an additional amount to catch up on a relatively small delinquency. |
| Special Forbearance | Provides temporary payment relief while the borrower recovers from a financial hardship. |
Borrowers who are not yet ready to resume regular payments but expect their situation to improve. |
| Traditional Loan Modification | Changes one or more loan terms to resolve the delinquency and create a sustainable payment structure. |
Borrowers who need a permanent adjustment to their loan terms. |
| 30-Year Loan Modification | Re-amortizes the loan over a new 30-year term to improve affordability and resolve the delinquency. |
Borrowers who need payment relief through loan restructuring. |
| VA Partial Claim | Allows the servicer to advance funds to bring the loan current and create a deferred balance that is generally repaid when the loan is paid off, refinanced, or the home is sold. |
Borrowers who have recovered from a temporary hardship, can afford the regular mortgage payment again, but cannot afford the lump-sum amount needed to bring the loan current. |
| 40-Year Loan Modification | Extends the repayment term to provide additional payment relief beyond other home-retention options. |
Borrowers who require the lowest possible payment to maintain sustainable homeownership. |
| Foreclosure Alternatives | Includes options such as a traditional sale, short sale, or deed-in-lieu of foreclosure when home retention is no longer feasible. |
Borrowers who cannot sustain homeownership despite available retention options. |
THE VAREP DIFFERENCE
VAREP combines the standards and accountability of a HUD-approved Housing Counseling Agency with the mission of a Veterans Service Organization.
Through this unique approach, VAREP provides:
• Housing counseling and financial education.
• VA home loan benefit guidance and borrower support.
• Foreclosure prevention and housing stability assistance.
• Advocacy and case management for veteran homeowners.
• Military-informed support tailored to servicemembers, veterans, surviving spouses, and military families.
This combination allows VAREP to help military-connected households navigate housing challenges, understand their options, and work toward long-term financial and housing stability.
VA Loan Partial Claim
WHAT VETERAN HOMEOWNER NEEDS TO KNOW
The return of the VA Partial Claim Program represents one of the most significant changes to VA loss mitigation policy in recent years. Following the expiration of certain COVID-era foreclosure prevention initiatives and growing concerns about veteran mortgage delinquencies, Congress authorized a new VA Partial Claim Program designed to help eligible veteran homeowners avoid foreclosure and retain their homes.
IMPORTANT DATES
• June 1, 2026: The Department of Veterans Affairs formally implemented the new program as part of its updated loss
mitigation framework.
• June 15, 2026: Mortgage servicers may begin submitting Partial Claims to VA.
• November 28, 2026: Mortgage servicers must fully implement the systems and procedures necessary to administer the
program.
THE PROGRAM MAY HELP BORROWERS:
• Bring a delinquent VA-guaranteed mortgage current without making a large lump-sum payment.
• Resolve eligible missed mortgage payments, escrow shortages, and other allowable past-due amounts.
• Avoid foreclosure and remain in their home.
• Resume making their regular monthly mortgage payment.
Note: Under the program, the amount needed to bring the loan current is placed into a separate deferred lien against the property.
THIS MEANS:
• The borrower does not make monthly payments on the Partial Claim balance.
• The borrower resumes making their regular mortgage payment.
• The deferred balance is generally repaid when the home is sold, refinanced, the mortgage is paid in full, or another
program-triggering event occurs.
IT IS IMPORTANT TO UNDERSTAND THAT A VA PARTIAL CLAIM:
• Does not forgive the debt.
• Does not reduce the monthly mortgage payment.
• Is not available to every borrower in default.
• Is one option within VA’s Loss Mitigation Waterfall.
• Is intended for borrowers who can afford their mortgage payment going forward but need assistance bringing the loan
current.
UNDERSTANDING THE 25% AND 30% LIMITS
One of the most important eligibility requirements involves the amount needed to bring the loan current.
In most cases, the total amount advanced through the Partial Claim cannot exceed 25% of the unpaid principal balance (UPB).
EXAMPLE:
• Unpaid Principal Balance: $300,000
• Maximum Partial Claim Amount (25%): $75,000
