VA Partial Claim Program 2026: Florida Veterans' New Foreclosure Lifeline

If you are a Florida veteran with a VA-guaranteed home loan and you have fallen behind on payments, there is real, concrete help available right now — and most veterans do not know about it yet.

On June 15, 2026, the Department of Veterans Affairs launched the VA Partial Claim Program, a new foreclosure-prevention tool created by the VA Home Loan Program Reform Act signed into law on July 30, 2025. The program directly addresses the gap left when the VA stopped accepting new submissions to the Veterans Affairs Servicing Purchase (VASP) program on May 1, 2026.

According to reporting from NPR and the Center for Responsible Lending, more than 10,000 veterans lost their homes during the months between VASP's closure and the Partial Claim Program's launch, and roughly 90,000 more remained behind on payments or in active foreclosure proceedings. The new program exists specifically to reach those veterans before it is too late.

Here is what the program does, who qualifies, and exactly what Florida veterans need to do to access it.

What the VA Partial Claim Program Does

The core idea is straightforward: instead of adding your missed payments to your existing loan balance at a new interest rate, the VA Partial Claim Program moves that overdue amount into a separate, interest-free deferred lien attached to your property.

Here is what that means in practice:

• Your original VA mortgage stays in place, with your original rate and terms.
• The missed-payment amount becomes a subordinate (second) lien with no monthly payment and no interest.
• You only repay that deferred lien when you sell the home, refinance your primary mortgage, or pay off your original loan.
• Before final approval, you must successfully complete a three-month trial payment plan, making your regular monthly payments on time, to demonstrate you can sustain them going forward.

The program is authorized through July 30, 2030, and applies nationwide — including in all 67 Florida counties.

Background: What Happened to VASP?

VASP — the Veterans Affairs Servicing Purchase program — was launched in 2024 as a temporary measure to help veterans who fell behind during and after the COVID-19 pandemic. Under VASP, the VA would purchase a veteran's defaulted loan from the servicer and modify it to a 2.5% fixed interest rate, often dramatically reducing the monthly payment. More than 33,000 veterans received VASP modifications.

The VA announced it would stop accepting new VASP submissions on May 1, 2026, citing the program's cost. Advocates at the Center for Responsible Lending and others immediately raised alarms about the gap this would create. Congress and the VA responded with the Partial Claim Program — but the months between VASP's closure and the new program's June 2026 launch were difficult ones for veterans in default.

If you are a veteran who received a VASP modification, you keep those terms. The change applies only to veterans seeking new assistance from May 1, 2026 onward.

For a broader picture of what's happening in Florida, see why Florida now leads the nation in foreclosure filings and the statewide foreclosure rate data for 2026.

Who Qualifies for the VA Partial Claim Program in Florida

Eligibility requirements come directly from VA guidance:

• VA-guaranteed loan only. FHA, conventional, and USDA loans are not eligible. If you are not sure whether your loan is VA-guaranteed, call your servicer and ask.
• Primary residence. Investment properties and second homes do not qualify.
• In default or at imminent risk of default. You must be behind on payments or facing circumstances that will cause you to fall behind.
• Ability to resume regular payments. The program is designed for veterans who can afford their original monthly payment going forward — just not the lump sum of arrears. You will need to document current income and show the hardship that caused the delinquency has been resolved or stabilized.
• Three-month trial plan completion. Before the partial claim is finalized, you must make three consecutive on-time monthly payments at your regular amount.

Servicers have until November 28, 2026, to fully implement the program in their systems, but submissions have been open since June 15, 2026. If a servicer tells you they are not yet processing partial claims, ask specifically about their implementation timeline and whether an interim process is available.

How to Apply: Step by Step

The VA Partial Claim Program does not have a standalone application portal. Everything runs through your loan servicer. Here is the process:

1. Call your servicer's loss mitigation department — not general customer service. Tell them you have a VA-guaranteed loan and want to discuss VA home retention options, including the partial claim program.
2. Document your hardship. Prepare a brief hardship letter explaining what caused the delinquency (job loss, medical event, reduced income, etc.) and how that situation has changed. Include proof of current income and recent bank statements.
3. Ask specifically about the VA Partial Claim Program by name. Some servicers may not volunteer it as an option. You have the right to know whether you qualify.
4. Complete the three-month trial plan. Once approved, make each payment on time. Missing a trial payment can disqualify you from the program.
5. Contact the VA if your servicer is unresponsive. Call the VA Regional Loan Center at 1-877-827-3702. VA Regional Loan Technicians can intervene directly with your servicer to push for loss mitigation.

For additional support navigating the servicer process, see our guide on what to do when your mortgage servicer won't help and how to negotiate directly with your lender.

The Full VA Loss Mitigation Waterfall

The Partial Claim Program is one tool in a sequence. VA regulations require servicers to work through a complete loss mitigation waterfall before pursuing foreclosure. In order, those options are:

1. Repayment plan — for veterans who can resume payments plus pay a portion of the arrears each month over time.
2. Special forbearance — a temporary pause or reduction in payments while you address a short-term hardship.
3. Loan modification — changes to the interest rate, term, or principal to reduce the monthly payment to an affordable level. See Florida loan modification options.
4. VA Partial Claim Program — defer arrears into an interest-free lien and resume original payments.
5. VA compromise sale (short sale) — if you cannot afford to keep the home even after these tools, the VA may approve a short sale and potentially waive the deficiency. Learn about short sales in Florida and the deficiency judgment rules specific to Florida.

A servicer that moves directly to foreclosure without offering these options may be violating VA loan servicing guidelines. If you believe your servicer skipped required steps, file a complaint with the Florida Attorney General and contact the VA Regional Loan Center.

Why This Matters for Florida Veterans Right Now

Florida posted the nation's highest foreclosure rate in the first half of 2026, with 27,494 properties recording foreclosure filings — roughly one in every 373 homes — according to ATTOM's midyear report released July 16, 2026. National foreclosure activity rose 21% year-over-year in the same period, with ATTOM and HousingWire both citing FHA and VA mortgage stress as primary drivers.

The gap between VASP's closure and the Partial Claim Program's launch hit veterans at a difficult time. Insurance costs have surged, inflation eroded purchasing power, and many veterans who bought at 2021-2022 peak prices are now carrying mortgages on homes worth less than they paid. If you have a VA loan and you are behind — or close to it — the window to act before a lis pendens is filed is the most important window you have.

Understand where you stand in the process. See what a lis pendens means in Florida and the full Florida foreclosure timeline so you know exactly how much time you have to act.

If You Have Equity, You Have More Options

Not every veteran in default will pursue the Partial Claim Program. If keeping the home is not the goal — or if the total housing cost (mortgage, taxes, insurance) is truly unaffordable even after a partial claim — selling before foreclosure may be a stronger outcome.

Many Florida veterans who bought before 2020 or made a solid down payment still have meaningful equity, even after recent value softening. If you have equity, you may be able to sell before the foreclosure sale, pay off the mortgage and arrears from proceeds, and walk away with cash — protecting both your credit and your VA loan entitlement for future use.

Knowing your current equity position is the starting point for every decision. If you are not sure what your home is worth today, a free market analysis from a Florida REALTOR® familiar with distressed property takes less than 24 hours and gives you a foundation to work from. See also: how much equity you need to sell during foreclosure.

Free Resources for Florida Veterans Facing Foreclosure

Use these no-cost resources before paying anyone for help:

• VA Regional Loan Center: 1-877-827-3702 — direct line for veterans with delinquent VA loans. They can contact your servicer on your behalf.
• HUD-approved housing counselors: 1-800-569-4287 — free foreclosure counseling for any homeowner, including veterans. See our full guide to HUD counseling for Florida homeowners.
• HOPE Hotline: 1-888-995-4673 — free foreclosure prevention assistance.
• Florida Legal Aid: Free or low-cost foreclosure legal help may be available based on income. See free legal aid for Florida foreclosures.

Barrett Henry, REALTOR® with REMAX Collective, has helped Florida homeowners navigate foreclosure for 23+ years, including veterans working through VA-specific processes. Call (813) 761-0133 or email help@flforeclosurehelp.com for a free, confidential consultation. There is no cost and no obligation. Visit the Get Help page to start.

Related Guides

• VA Loan Foreclosure Options for Florida Veterans
• Military Foreclosure Protections in Florida
• Florida Mortgage Forbearance Guide
• Loan Modification in Florida: Complete Guide
• Florida Foreclosure Timeline 2026
• Florida Now Leads the Nation in Foreclosures 2026
• 8 Ways to Stop Foreclosure in Florida
• Complete Florida Foreclosure Timeline

This is general information, not legal advice. VA program rules and servicer practices change. Verify current eligibility and terms directly with your servicer and the VA Regional Loan Center at 1-877-827-3702.