On eve of Veterans Day, concerns arise over VA’s new foreclosure prevention program for veterans

The U.S. Department of Veterans Affairs is rolling out a new program to help veterans avoid foreclosure, but a federal watchdog is warning that the agency lacks a comprehensive plan to evaluate the program’s effectiveness.The Partial Claim Program, which provides mortgage relief to veterans who have fallen behind on payments, officially took effect June 15, although mortgage servicers have until Nov. 28 to complete implementation, including establishing the systems and procedures needed to administer the assistance.
Under the program, VA reimburses mortgage servicers for missed payments and certain fees, bringing borrowers current on their loans. Veterans repay the amount without interest when they sell or refinance their homes, pay off their mortgages or reach the end of their loan terms. Borrowers must complete a three-month trial payment plan demonstrating their ability to resume regular mortgage payments to qualify.
The program was authorized under legislation signed into law in July 2025 and is scheduled to expire in July 2030 unless Congress extends it.
In a report released Tuesday, the Government Accountability Office found that VA does not have a comprehensive evaluation plan, nor does it intend to begin analyzing program trends and outcomes until December 2027, potentially limiting its ability to determine whether the program is achieving its intended results.
“VA has planned a high-level approach to assessing program effectiveness but has not developed a comprehensive plan to do so,” GAO wrote in its report highlights. “Without a comprehensive plan, VA and Congress will not have timely and credible evaluation results needed to make decisions about the program and identify changes that could improve outcomes for veteran borrowers, help prevent foreclosure, and reduce costs to taxpayers.”
GAO warned that VA’s proposed approach does not adequately distinguish the program’s effects from other factors influencing borrower outcomes or address potential improvements to its design.
Eight of 10 organizations interviewed by GAO expressed concerns that a provision generally limiting veterans to one partial claim per loan could put them at a disadvantage compared with borrowers participating in other federal mortgage assistance programs, which permit multiple claims within certain limits.
Six organizations also supported allowing borrowers to combine partial claims with loan modifications, which could reduce monthly payments. VA officials said current law generally does not authorize those changes.
More than 9,000 homes with VA-guaranteed mortgages were foreclosed upon in 2025, according to agency data cited in the report.
GAO underscored the importance of satisfactory program evaluations, as the program requires congressional reauthorization to continue after five years.
VA did not provide comments on the report.

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