Foreclosure Assistance for Veterans: VA Loan Help, Partial Claims, and Free Counseling

Foreclosure assistance for veterans to ask for first

1. Call your servicer, the company you send your payment to. Tell them you are having trouble and ask for a loss mitigation application.
2. Call a VA loan technician at 877-827-3702 and select 6 if you have a VA-backed loan.
3. Call a HUD-approved housing counselor at 800-569-4287 for free advice on any type of loan.
4. Talk to a legal assistance office if you are on active duty or recently separated.
5. Keep opening your mail. Foreclosure notices have deadlines that matter.

How VA loan technicians help

Most VA home loans are made by private lenders, and the VA guarantees part of the loan. That guarantee gives your servicer a reason to work with you. According to the VA’s page on trouble making mortgage payments, VA loan technicians can help you figure out which option fits your situation, especially if you are nervous about contacting your servicer or are having trouble working with them.

Call 877-827-3702 (TTY: 711) and select 6. Hours are Monday through Friday, 8:00 a.m. to 6:00 p.m. Eastern. Have your loan number, servicer name, and a rough monthly budget ready. The technician cannot make your payments for you, but they can explain options and press your servicer to review you for them. This help is free.

VA options to keep your home

The VA lists these options for borrowers with VA-backed loans who want to stay in their home. Your servicer decides which ones you qualify for.

Ask your servicer which options you are being reviewed for, and ask for every decision in writing. If you are denied, ask why and whether you can appeal. The CFPB explains loss mitigation in general terms.

The VA partial claim program

The VA partial claim is a new tool created after a 2025 federal law. The VA describes it this way: VA works with your servicer to pay your missed mortgage payments and bring your loan current. You pay the partial claim back when you pay off your loan or sell your home.

• Trial plan first: you must complete a 3-month trial payment plan, paying on time for 3 straight months.
• Start with your servicer: you do not apply to VA directly. Your servicer reviews you and submits the claim.
• Rollout: the VA says servicers have until November 28, 2026, to add partial claims to their systems. If your servicer says it is not ready, ask when it will be and ask the VA loan technician for help.
• It is not free money: the amount is repaid later, so ask how it will be recorded on your home and when it comes due.

Some news outlets have reported limits on how much can be paid through a partial claim. Those limits are set in VA rules and may change, so ask your servicer or a VA loan technician for the current figure for your loan.

What happened to VASP

From 2024, the VA Servicing Purchase program (VASP) let the VA buy some defaulted VA loans and give veterans a new, lower-rate loan. The VA stopped taking new VASP cases in 2025. If you read an older article that tells you to ask for VASP, that advice is out of date. The partial claim and the modification options above are the current tools. If you were already in VASP, contact the VA loan technicians with questions about your loan.

Options if you cannot keep the home

Sometimes keeping the home is not realistic. Leaving on your own terms is often better for your credit and future VA loan eligibility than a completed foreclosure. The VA lists these options:

• Extra time for a private sale: your servicer may delay foreclosure while you sell the home yourself.
• Short sale (compromise sale): you sell for less than you owe, and the servicer accepts the sale price. The VA notes this could reduce your future home loan benefit.
• Deed in lieu of foreclosure: you give the home back to the servicer instead of going through foreclosure.

If the VA pays a claim on your loan, you may have to repay that amount to use your full VA loan benefit again. The VA calls this restoration of entitlement. Ask a VA loan technician what it would cost in your case.

SCRA protections for service members

The Servicemembers Civil Relief Act protects people on active duty, and for a time after. Under 50 U.S.C. 3953, if your mortgage was taken out before your military service began, a sale or foreclosure is not valid during your service or within one year after it ends unless a court orders it. A court can also delay the case or adjust the loan if service affected your ability to pay. Some older guides still say nine months; the current law says one year.

The SCRA also caps interest at 6% on debts taken out before active duty. For a mortgage, Military OneSource says the lower rate lasts one year after active service ends. Ask your lender in writing and include a copy of your orders. Your installation’s legal assistance office can help for free.

Help when your loan is not a VA loan

Many veterans have FHA, USDA, or conventional loans. VA loan technicians focus on VA-backed loans, but these steps work for any mortgage:

• Ask your servicer for a loss mitigation application and send it back complete. Federal mortgage servicing rules give extra protection when a complete application is sent in early.
• Work with a HUD-approved housing counselor, who can review the offer and talk to the servicer.
• Ask about state foreclosure mediation programs, which some states offer for free.
• Check your state veterans affairs office, county veterans service officer, and veteran charities for one-time grants.

The Homeowner Assistance Fund, which helped many homeowners catch up after COVID-19, has wound down. Its federal period of performance ended September 30, 2026, so most state programs are no longer taking applications. Do not pay anyone who claims they can get you HAF money now.

Free housing counselors and legal help

A HUD-approved housing counselor is free or low cost. They can also help with a budget so the new payment plan lasts. Our debt help for veterans guide covers other bills that may be squeezing your budget.

How the foreclosure timeline usually works

Every state has its own foreclosure process, but the early stages look similar:

1. Missed payment: late fees start after the grace period.
2. Early contact: your servicer must try to reach you and tell you about options.
3. Delinquency of 61 or more days: for VA loans, this is when VA loan technicians are typically involved.
4. Breach or default letter: a formal notice says how much you must pay to catch up.
5. Foreclosure filing: in most cases, federal servicing rules do not allow the first foreclosure filing until a loan is more than 120 days late.
6. Sale date: set by court or by notice, depending on your state.

The earlier you ask for help, the more options you have. Even after a sale date is set, call your servicer, the VA, and a housing counselor right away.

Foreclosure rescue scams to avoid

Veterans are often targeted by people who promise to save the home. The CFPB’s foreclosure relief scam advisory lists warning signs:

• Being told to stop paying your mortgage or to pay someone other than your servicer.
• Up-front fees before any deal with your lender.
• Pressure to sign over the deed or sign papers you do not understand.
• Promises of a “forensic audit” of your loan.
• Mail that looks like it comes from the VA or another government agency but does not.

VA loan technicians and HUD-approved counselors do not charge to help you.

What to do this week, step by step

1. Gather papers: mortgage statement, any notices, pay stubs or benefit letters, and bank statements.
2. Write a budget showing what you can pay each month.
3. Call your servicer and request a loss mitigation application.
4. Call 877-827-3702 and select 6 if you have a VA loan.
5. Call 800-569-4287 for a HUD-approved housing counselor.
6. Send your application back complete and keep copies and proof of delivery.
7. Check your VA benefits: make sure you are getting any disability compensation or pension you qualify for, since more income helps your case.

For more on mortgage trouble in general, see our mortgage relief programs guide.

Related guides

• Debt relief for veterans
• Foreclosure assistance grants for seniors
• Catholic Charities mortgage assistance
• Veteran utility assistance programs

Frequently asked questions

This guide is general information, not legal advice. Foreclosure rules vary by state. National Relief Program is an independent website and is not affiliated with the VA, HUD, or any lender.