VA LOAN RELIEF BILL SIGNED: FORECLOSURE AID FOR VETERANS
If you’re a Veteran homeowner and you’ve fallen behind on mortgage payments, you’re not alone—and you’re not out of options. If you’ve been facing foreclosure, or left in limbo after the VA scrapped its VASP rescue plan, there’s good news: a new law just changed everything.
Today, President Trump signed the VA Home Loan Program Reform Act of 2025 (H.R. 1815) into law, delivering long-overdue protection to thousands of Veterans and military families. This legislation is designed to stop unnecessary Veteran foreclosures and prevent homelessness—offering immediate, practical relief to those most at risk.
Here’s what you need to know—and how to prepare to use it.
Veterans Foreclosure Crisis: Historical Context
In May, the Department of Veterans Affairs abruptly ended the VASP (Veterans Assistance Servicing Purchase) program, leaving over 40,000 Veterans who were delinquent on their loans with no formal safety net.
Veterans across the country—many of them still recovering from COVID-era financial hits—were suddenly facing foreclosure with nowhere to turn.
The new law brings real relief, replacing VASP with a long-term solution: a permanent Partial Claim Program that works for both lenders and Veteran borrowers.
VA Partial Claim Program: Mechanism and Benefits
Veterans who are behind on mortgage payments can get up to 30% of their unpaid balance covered by the VA. The amount is moved to the end of the loan—no interest, no monthly payment.
Streamlined Foreclosure Protections:
Mortgage servicers must now follow a standardized “loss mitigation waterfall,” meaning relief options must be offered before foreclosure can even be considered.
Your lender must work with you through a defined process before pursuing foreclosure.
More Help for the Homeless:
The bill boosts funding for the VA’s Grant and Per Diem (GPD) program, helping Veterans facing homelessness find transitional housing and services.
You won’t have to repay it monthly—it’s deferred until you sell, refinance, or finish the loan term. This is not a forbearance or modification—it’s a reset.
Eligibility Criteria for VA Partial Claim Program
You may qualify if:
- You have a VA-backed home loan.
- You’ve missed at least one payment or are at risk of default.
- Your hardship occurred on or after March 1, 2020 (including job loss, illness, deployment, or financial strain).
The relief applies even if you’re already in foreclosure proceedings—but you’ll need to act quickly now that the program is live.
Action Steps Post-VA Loan Relief Bill Signing
Now that the bill is signed:
- Call your loan servicer and ask about the VA Partial Claim Program.
- Reach out to VA Loan Support at 877-827-3702 for guidance.
- Visit the VA Home Loan website.
- Go to va.gov/housing-assistance/home-loans for the latest updates and application info.
Impact of VA Loan Relief Bill on Veterans
Veterans served this country with everything they had—and when hard times hit, we owe it to them to fight just as hard to keep them in their homes. This new law isn’t charity—it’s a commitment fulfilled.
Don’t wait for a foreclosure notice to arrive. Be proactive, spread the word, and help fellow Veterans get the help they’ve earned.
Your service earned this protection. Now it’s time to use it.
Suggested reads:
BY NATALIE OLIVERIO
Veteran & Senior Contributor, Military News at VeteranLife
Navy Veteran
Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
Credentials
Expertise
Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
