Servicemembers Civil Relief Act (SCRA)
August 16th, 2009
On December 19, 2003, the Servicemembers Civil Relief Act (SCRA) was signed into law by the President of the United States. This section applies to military personnel and it can help them in case of foreclosure. The Federal Housing Administration has lot of information on this Servicemembers Civil Relief Act (SCRA). This law completely rewrites the Soldiers and Sailors Civil Relief Act of 1940, expanding many of the previous law's civil protections.
For example, if you or your spouse is on active military duty, you may qualify for a reduction in your mortgage interest rate. This will lower your house payments. That means, if you currently cannot afford to keep up with your mortgage payments and you will be facing foreclosure pretty soon, then this law can help lower your payments to an affordable level.
Who is eligible for the Servicemembers Civil Relief Act (SCRA)?
The law applies to active duty military personnel who had a home loan prior to enlistment or prior to being ordered to active duty. This includes members of the:
- Army
- Navy
- Marine Corps
- Air Force
- Coast Guard
- and more
Does this Servicemembers Civil Relief Act (SCRA) cover dependents?
In some cases, dependents of servicemembers are covered but not always.
Does the Servicemembers Civil Relief Act (SCRA) protect me against foreclosure?
Although the Servicemembers Civil Relief Act (SCRA) helps prevent foreclosure by lowering mortgage interest rates, it does not totally protect you against foreclosure. However, mortgage lenders cannot foreclose while you are on active duty or within 90 days after military service without court approval. If the mortgage lender can show that your ability to repay the mortgage debt was not affected by your military service, the court may allow them to proceed with the foreclosure process.
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Posted in Foreclosure Laws, Foreclosure Process, Help to Avoid Foreclosure, Loan Modification, Ways to Avoid Foreclosure | 
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