The Department of Veterans Affairs has launched a new program aimed at helping veterans who are struggling financially avoid foreclosure and remain in their homes.

The VA Partial Claim Program is designed for veterans with VA-backed home loans who are in default but may be able to resume making regular mortgage payments. Under the program, mortgage servicers identify eligible veterans and place them on a three-month trial payment plan.

If the veteran successfully completes the trial period, the mortgage servicer pays the overdue mortgage amount to bring the loan current. The VA then reimburses the servicer for that amount. The servicer repays the VA when the loan is paid in full, refinanced or the property is sold.

VA Secretary Doug Collins said the program will help keep thousands of veterans in their homes.

The VA says the Partial Claim Program is one of several home retention options available to veterans, including repayment plans, traditional loan modifications, 30-year and 40-year loan modifications, and disaster-related modifications.

Veterans having trouble reaching a resolution with their mortgage servicer can contact the VA at 877-827-3702, option 6.

The VA says it has helped veterans, service members and survivors purchase more than 29 million homes since the home loan guaranty program began.