What the partial claim is

Congress created the VA Partial Claim Program in the VA Home Loan Program Reform Act, signed July 30, 2025 (Public Law 119-31; VA News, June 15, 2026), which added 38 U.S.C. 3737. In plain terms:

• Who it is for. A VA-backed loan on the borrower’s primary residence that VA decides is in default or at imminent risk of default (38 U.S.C. 3737(a)).
• What VA does. VA pays the loan holder the amount it decides is needed to prevent or resolve the default, and in return takes a lien on the house that sits behind the first mortgage (3737(b)).
• How much. Up to 25% of the unpaid principal balance. The cap is 30% for a borrower who missed a payment between March 1, 2020 and May 1, 2025 (3737(c)(1)).
• What it pays. The money goes first to arrears, which can include taxes, insurance premiums and homeowners association dues that VA decides are needed to cure the default (3737(c)(4)).
• How often. Generally one partial claim per loan. A second one is possible for payments missed during a presidentially declared major disaster or the 120 days after it (3737(c)(2)), which matters on our hurricane coast.

How you get one, and how long it takes

You do not apply to VA directly. Your servicer reviews you for it. Before a partial claim is made, you must complete a 3-month trial payment plan that shows you can make the mortgage payment on time for three months in a row (VA, updated September 23, 2026).

Timing is the catch right now. VA says servicers have until November 28, 2026 to add partial claims to their systems (VA, updated September 23, 2026). First steps that help either way:

1. Ask your servicer’s loss mitigation department, by name, for a VA Partial Claim review. Note the date and who you spoke with.
2. Send in a complete loss mitigation application, with every document they list. Federal servicing rules give extra protection once a complete application is in (12 CFR 1024.41).
3. If you cannot get an answer, call a VA loan technician at 877-827-3702 and select option 6, Monday through Friday, 8:00 a.m. to 6:00 p.m. Eastern (VA News, June 15, 2026; VA, updated September 23, 2026).
4. Call a free HUD-approved housing counselor through the NC Housing Finance Agency at 1-888-442-8188 (nchfa.com, checked October 9, 2026).

The other VA options to ask about

A partial claim fits best when the payment is affordable again. If it is not, VA lists other paths (VA, updated September 23, 2026):

• Repayment plan: if you have missed a few payments, a plan that lets you go back to making your regular payments.
• Forbearance: extra time to repay missed payments.
• VA loan modification: missed payments and related legal costs are added to the balance, and the new payment could be higher.
• Short sale: the servicer accepts the sale proceeds as payment of the debt.
• Deed in lieu of foreclosure: you sign the deed over to the servicer.

VA warns that a short sale or a deed in lieu could cost you some or all of your future home loan benefit. Our guide to selling a house with a VA loan explains entitlement and assumptions.

Where this fits in the North Carolina foreclosure clock

Federal rules generally bar a servicer from making the first foreclosure filing until the loan is more than 120 days delinquent (12 CFR 1024.41(f)). North Carolina adds a written notice at least 45 days before a foreclosure hearing notice is filed on a primary residence, and that letter must list HUD-approved counselors and the State Home Foreclosure Prevention Project (N.C.G.S. 45-102). Our answer on the 45-day pre-foreclosure letter walks through it. The earlier you ask for a review, the more room you have.

Listing versus a cash offer: an honest comparison

If a VA option cures the default and the payment works, that is usually the better result. Selling makes sense when the payment no longer fits, PCS orders are taking you away, or you are done with the house.

If you sell, listing with an agent usually nets more when there is time and equity and the house shows well. A cash sale gives up some of that money for a set closing date and no repairs, which can matter when a foreclosure date or report date is close. Either way, any partial claim lien is paid back from the sale. We can put a written cash offer and an honest listing estimate side by side so you can compare them against the payoff.

Cape Fear county notes

The partial claim is a federal program, so the rules are the same in New Hanover, Brunswick, Pender and Onslow counties. What changes is the foreclosure file: if one is started, it is handled by the Clerk of Superior Court in the county where the house is. If you are weighing a move from Onslow, see our guide for sellers around Camp Lejeune.

Questions people ask

Questions about your situation? Call or text (910) 372-6720.

Sources: 38 U.S.C. 3737 as added by the VA Home Loan Program Reform Act, Public Law 119-31 (govinfo.gov, checked October 9, 2026); U.S. Department of Veterans Affairs, Help avoiding foreclosure (va.gov, updated September 23, 2026, checked October 9, 2026); VA News, VA launches Partial Claim Program to help Veterans avoid home foreclosure (news.va.gov, June 15, 2026, read October 9, 2026); 12 CFR 1024.41 (ecfr.gov, checked October 9, 2026); N.C.G.S. 45-102 (ncleg.gov, checked October 9, 2026); NC Housing Finance Agency (nchfa.com, checked October 9, 2026).