Click Here for Resources on How to Prevent Foreclosure
Statistics indicate that military towns have a larger number of people trying to avoid foreclosure on their home; a 4 to 1 ratio is reported against the national average.
Many conclusions could be drawn as to why this is so. The sad truth, however, is that military families were targeted in the subprime lending assault of the last 10 years. They were prime candidates; frequent moves, overseas assignments, and low pay meant they were likely to have poor credit ratings. The following video sheds some light on the situation...
The initial low rates and easy terms of this category of loans made them more attractive to military families than the usual route of a Veterans Administration loan. In fact, at the peak of the U.S. subprime lending, the number of new VA loans fell to their lowest level in 12 years.
In light of this, it’s not surprising that a large number of military families are being caught in the subprime mortgage collapse. Many are now looking for options in dealing with the fallout, particularly to avoid foreclosure.
Click Here for Resources on How to Prevent Foreclosure
The Service Members’ Civil Relief Act (SCRA) is something that could help to prevent foreclosure. It was created to protect service men and women from losing their homes for nonpayment of mortgages while they are on active duty. There's also a provision to cover them for up to 90 days after returning from an assignment.
The power of this bill in helping military families stop foreclosure is quite simple; if covered under the SCRA, a court ruling must be made before a foreclosure sale or seizure can occur to your home. Military personnel can ask for a court delay and be issued a 90 day adjournment. If the court denies the delay request, an attorney must be appointed to represent the service member in absentia.
If the lender forecloses without a court order, the sale is invalid. If a foreclosure sale was conducted lawfully, there’s still some recourse. Foreclosed property can’t be seized until the service member completes active duty. In addition, the SCRA grants military personnel the right to revisit a default foreclosure judgment that was issued during active duty and also gives them the right to ask that it be overturned.
The list of those qualifying for protection to stop foreclosure on their home under this bill is broad; it includes any member of the Navy, Marine Corp, Air Force, Army, and Coast Guard. It also includes National Guard members who were called to active service during a national emergency and authorized by the President or Secretary of Defense for more than 30 consecutive days.
In addition, it includes members of the public health service, commissioned corps of the National Oceanic and Atmospheric Administration and citizens ordered to report for induction under the Military Service Act. Those serving with the Allied Forces are also covered under the bill.
If you're a veteran or family member of a veteran facing foreclosure, don't spare any time as you do have options. We encourage you to spare no effort in exploring all of them. Do not view the information on this page as legal advice concerning your rights. We strongly encourage you to speak with a professional that can give you accurate advice concerning your specific situation.
Click Here for Resources to Help Avoid Foreclosure
In addition to the information outlined here many other helpful resources are available to help anyone avoid foreclosure on their home. The links on this page will direct you to some of those resources. Again, we encourage you to explore all-of-your options.
Information about the SCRA and how it could benefit your situation can be obtained by contacting the Judge Advocate General’s office at your local military base or the local Veterans Administration regional office.
