Congress brought back VA “partial claims” in 2025. If you’ve fallen behind, VA can advance the missed payments to your servicer, bring your loan current, and put that advance into a zero-interest junior lien that you repay later (sale, refi, or payoff). It’s not forgiveness, but it can save your home and your credit path.

Quick Facts
• VASP is closed to new submissions (ended May 1, 2025). Partial claims are the new tool. (
• Partial claim = VA pays your arrears (missed payments, late fees/escrows as allowed) to bring you current; you get a 0% interest junior lien for that amount.
• Typical cap: up to 25% of your loan’s unpaid principal balance (some COVID-era cases referenced higher caps). It won’t solve every deep delinquency, but it covers a lot.
• You still make your regular mortgage payment going forward. The junior lien is settled later—at refi, sale, or payoff.

How a Partial Claim Helps You Avoid Foreclosure
1. Stops the clock. The servicer gets paid what’s past due, and your loan is restored to “current,” halting foreclosure progress.
2. No interest on the VA lien. You’re not piling interest onto the rescue funds.
3. Flexible exit. You don’t have to write a big check today—the lien is cleared when you sell, refinance, or pay off.
4. Brings VA in line with FHA/USDA tools that have used partial claims for years.

Who May Qualify
• You have a VA-backed loan and you’re behind (or about to be).
• You can resume making the normal payment after the partial claim (this isn’t a permanent payment cut; it’s a cure).
• Your servicer must submit and the numbers have to pencil within program limits. (Not automatic for everyone.)

What It Doesn’t Do (Read This)
• No debt wipe-out. You still owe the advanced amount—just at 0% as a junior lien.
• There’s a cap. If you’re extremely far behind beyond the cap, a partial claim alone may not fix everything—you might need a combo plan (modification, repayment plan, etc.).
• It replaces VASP. Don’t expect the old 2.5% VA-owned modification; that program is over for new cases.

Step-by-Step: How to Pursue a Partial Claim (Portland-Area Game Plan)
1. Call your servicer and ask about VA Partial Claim eligibility. Get a written outline of amounts and timelines.
2. Document your ability to resume payments (pay stubs, awards letters—remember: VA disability income is tax-free and often grossed-up by lenders for qualifying, which can help your DTI).
3. Review the numbers with a local pro (I’ll help you compare scenarios: partial claim vs. mod vs. repay plan vs. sell).
4. If approved, sign the paperwork (the 0% junior lien) and confirm your loan shows current after funding.
5. Stabilize cash flow: set up autopay, rebuild reserves, and monitor escrow/insurance changes so you don’t slip again.
Portland note: If property taxes or utility liens contributed to the arrears, let’s review Multnomah/Washington/Clackamas county timelines and tax statements to avoid repeat issues.

Real-World Scenario (Numbers Kept Simple)
• You’re 6 months behind at $2,900/mo = $17,400 arrears, plus escrow/fees that push the total to ~$20,000.
• Partial claim advances ~$20,000 to your servicer → your loan shows current.
• You resume your $2,900/mo payment. The $20,000 sits as a 0% junior lien to be paid when you sell/refi/payoff.
• Credit trajectory improves versus a foreclosure, and you keep your equity path. 

FAQs
Did VASP really end? What if I already got in?
Yes—ended May 1, 2025. If you were already approved, you stay in. New submissions are not accepted.
What if a partial claim doesn’t cover all of my arrears?
Then we look at the loss-mitigation “waterfall”: repayment plan, modification, or—in some cases—a strategic sale to preserve equity.

Is a partial claim right for me or should I sell?
If you can comfortably resume payments and want to stay long-term, partial claim is worth a hard look. If your budget’s tight for good, selling before foreclosure protects equity and gives you control over timing.

Portland-Area Help 
I’m a VA-savvy broker serving Portland Metro + Vancouver. Bring me your mortgage statement, escrow breakdown, income docs, and I’ll map options: partial claim vs. mod vs. quick equity-protect sale. We’ll do what’s best for you!
Troy Doty
Call/Text: 503-997-4169
Email: troy@nwrealtysource.com

What to Do Today
• Call your servicer and ask: “Can I be evaluated for the VA Partial Claim to cure my delinquency?”
• Message me with your numbers for a second opinion.
• If keeping the home isn’t sustainable, let’s discuss a fast, clean exit that preserves equity and avoids a foreclosure mark.

Sources
• VA: Help to avoid foreclosure; VASP ended May 1, 2025. (Veterans Affairs)
• VA Benefits (VASP FAQ): Wind-down and rationale for ending VASP. (Benefits)
• Public Law: VA Home Loan Program Reform Act (H.R. 1815) authorizing partial claims. (Congress.gov)
• Policy/Analysis: Urban Institute, NCLC, DAV on partial claim authority and impacts. (Urban Institute)
• Background: MBA brief on VA partial claims and why parity with other programs matters. (MBA)

Disclaimer: I’m not a lawyer or your loan servicer. Program terms are set by VA and implemented by your servicer; eligibility and results vary. Always verify figures and approvals in writing.