Victory for Veterans: Congress Approves New VA Partial Claim Program to Prevent Foreclosures

keepourvetshoused
Jul 17
3 min read

A New Lifeline Has Arrived — But We Must Stay Vigilant

This week, Congress finally answered the desperate calls of thousands of veteran families teetering on the edge of foreclosure. With bipartisan support, lawmakers passed the VA Home Loan Program Reform Act (H.R. 1815), reviving and permanently authorizing the VA Partial Claim program — a tool that will provide real, life-saving relief to the very people who risked everything for our freedom.

At the KOVH Foundation, we celebrate this monumental step forward — but we also know this is just the beginning.

🏠 What Is the Partial Claim Program?

The new VA Partial Claim program allows the Department of Veterans Affairs to pay off a portion of a delinquent veteran’s mortgage, bringing their loan current and stopping foreclosure in its tracks.

The catch? It’s not a handout — it’s a second, no-interest lien against the property. Veterans don’t pay now, but they must repay when the home is sold, refinanced, or fully paid off.

Key program features:

Covers missed mortgage payments to bring loans current
VA files a non-interest-bearing subordinate lien
Limit: 25% of unpaid loan principal (up to 30% for COVID-era missed payments)
Can be used once per loan (with exceptions for disaster periods)

💥 Why This Matters

When the VA ended its Veteran Assistance Partial Claim Payment (VASP) program in May 2025, thousands of veteran households were left with no safety net. Servicers had no loss mitigation tools. Families were told to pay in full or lose their homes.

Now, that tide may be turning.

This legislation restores a critical tool to prevent the same kind of housing devastation we saw after the 2008 crisis — and that we’ve been fighting to avoid ever since. It offers dignity, stability, and hope to veterans who’ve sacrificed so much already.

🚨 But Relief Is Not Automatic

This program must still be signed into law by the President — and even after that, VA must set up the system, define procedures, and train servicers.

That means:

Delinquent veteran homeowners must speak up.
Servicers must stay educated and act ethically.
Communities and nonprofits must be ready to help.

The KOVH Foundation is preparing resources, training, and support to ensure veteran families don’t fall through the cracks again.

💪 What We’re Doing at KOVH

We’ve been in this fight since day one. From grassroots organizing to legislative advocacy, we’ve kept one message loud and clear: “No Veteran Should Lose Their Home Alone.”

Now, with this new program nearing reality, KOVH will:

✅ Launch state-by-state Ambassador Teams to guide veterans through the system✅ Provide free education and advocacy on how to apply for the partial claim✅ Continue to push for oversight, funding, and outreach to underserved families✅ Offer emergency care packages and mental health support to veterans in foreclosure

We won’t stop until every veteran has the tools to fight — and win — the battle for their home.

✊ How You Can Help

Share this post on social media
Donate to help us launch our Ambassador Program nationwide
Sign our petition urging VA to fast-track program rollout: chng.it/y9kRx8ghWn
Join us August 15th for the National Day of Action for Veteran Housing Justice