Veterans who have fallen behind on a VA-backed mortgage have another option to ask about as mortgage companies finish rolling out the Department of Veterans Affairs’ new partial-claim program this month.
For households in Snohomish and Island counties, the useful starting point is a conversation with the company collecting the mortgage payments, called the servicer. You can ask for help now, including a review of options beyond a partial claim.
Where to start
- Call your mortgage servicer. Use the contact information on your statement and ask for the team handling payment difficulties or foreclosure-prevention options.
- Ask VA for help. Call 877-827-3702, option 6, for assistance with a mortgage-servicing problem. VA’s home-loan contact page lists phone hours of 8 a.m.–6 p.m. Eastern, Monday–Friday, equivalent to 5 a.m.–3 p.m. Pacific. It also links to an online support portal.
VA says veterans and surviving spouses can receive foreclosure-avoidance counseling even when their mortgage is not VA-guaranteed. That counseling is separate from eligibility for the partial-claim program, which applies to qualifying VA-guaranteed loans.
What the Nov. 28 date means
The program began June 15. VA’s Oct. 1 notice to servicers says mortgage companies must finish implementing it by Nov. 28, 2026.
That is the servicers’ rollout deadline, not a deadline for veterans to submit an application. If your company says it is still putting the program in place, ask when it expects to begin reviews and what other assistance it can consider meanwhile.
How a partial claim works
A partial claim moves an approved amount of overdue mortgage debt into a balance to be repaid later. After a successful three-month trial payment plan, the servicer advances the amount needed to bring the mortgage current and VA reimburses the servicer, according to VA’s program announcement.
The Government Accountability Office’s Nov. 10 report explains that borrowers repay the partial claim without interest when they sell or refinance the home, pay off the mortgage or reach the end of its term. The amount remains a debt connected to the property. Ask how it will appear on statements and in a future payoff quote.
The law allows additional costs, fees and interest if a borrower defaults on the partial claim. Ask what happens if you cannot repay the deferred balance when it becomes due.
Who may qualify, and what can rule a loan out
The law establishing the program covers VA-guaranteed loans on a borrower’s primary residence that VA determines are in default or at imminent risk of default. Those broad statutory conditions are a starting point; VA also applies program-specific requirements through the servicer’s review.
The law generally caps a claim at 25% of the unpaid principal balance. A 30% cap applies to qualifying loans involving a missed payment during March 1, 2020–May 1, 2025. These are ceilings on assistance, not amounts every borrower receives.
VA’s current servicer FAQ adds important details:
- Servicers evaluate the loan through VA’s ordered sequence of mortgage-relief options. Borrowers cannot simply choose a partial claim without that review.
- VA says a previous COVID-era partial claim or refund modification on the same guaranteed loan rules out a new partial claim.
- The applicable percentage depends on the existing, unresolved default episode. Ask the servicer to explain which limit it used.
- A mortgage servicer’s own foreclosure referral does not automatically disqualify the loan. A foreclosure initiated by another entity, such as a homeowners association, can disqualify it.
These points are not a complete eligibility checklist. Ask the servicer or VA to review your particular history and explain any reason for denial. Get the proposed terms and required steps in writing before agreeing.
Questions worth asking before agreeing
A useful discussion should leave you with clear numbers and dates. Ask:
- What payment would I make during the trial and afterward?
- How much overdue debt would be deferred, and what would remain unpaid?
- When would the deferred balance become due?
- Which documents or signatures are needed, and by what date?
- If a foreclosure is already scheduled, what is its current status and what action is needed?
VA lists other possibilities, including repayment plans, forbearance and loan modifications. A modification changes the mortgage’s terms; compare the proposed payment, interest rate, term and total cost with the existing loan.
Free help in Washington
Washington homeowners can call 877-894-4663 for free foreclosure-prevention counseling through the state’s Foreclosure Fairness Program. Counselors can help review options and assess whether a referral to foreclosure mediation is available. Mediation eligibility and fees are separate from free counseling.
For a counselor serving your ZIP code, use the CFPB’s HUD-approved housing-counselor directory. Check that the agency offers mortgage-default or foreclosure counseling.
If you have received a foreclosure notice, share it with a counselor or attorney promptly. Keep the notice, mortgage statements, correspondence and any proposed agreement together so the person helping you can review the actual dates and terms.
