Active-duty military and mortgage rights

Military personnel on active duty in wartime (which, let’s face it, is pretty much all the time) have a bunch of protections from foreclosure thanks to the Servicemembers Civil Relief Act. And HUD has released a new form (click here for the Word doc) explaining servicemembers’ rights under the law.

The Act mandates that military personnel on active duty in wartime are entitled to mortgage relief, including a lower interest rate (not more than six percent) on their mortgages and foreclosure protection.  It states that a foreclosure proceeding against certain military personnel, who are recalled to active duty, is not valid unless the creditor has obtained a court order approving it and further states that the courts may stop the proceedings for a time or adjust the debt.

So if you have military clients, you may want to let them know about this. (If nothing else, it’s a good excuse to touch base.)

For more info, visit the government’s official SCRA page.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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One Response to Active-duty military and mortgage rights

  1. Tracy Boswell says:

    Bank of America actually has a Military Assistance department. If the active duty member is trying to complete a loan modification they have to fax a copy of their orders and foreclosure proceedings stop for a few months while actively pursuing a loan modification. Your file gets moved to that department and those are the only people you speak with during this process. Obviously things change everyday and this may not be the case when someone else calls but it is with a client of mine. :)

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