Military Families and Foreclose Prevention

Most people aren't aware of the fact that the- FHA case number
mortgage lender will be unable to foreclose on your- Evidence that your mortgage debt was procured
home, if one of the people holding the mortgage isbefore your enlistment/active duty status
on active service in the military. That's right! No- Your activation date
matter how far behind you are on your mortgageAlso along with the interest rate reduction, certain
payments, no lender is legally permitted to foreclosemilitary homes may also be eligible for a reduction in
or make a seizure on the property of an activetheir monthly payments and/ or a complete stay in
military service person until a period of 90 days afterpayments for a certain period of time. Such
they have returned to civilian life. This position isconditions are not governed by law but are usually
guaranteed by national mandates which have beenconsidered in cases where military personal face
instituted by Congress.severe financial hardship while serving their country
In addition to this foreclosure moratorium, those whooverseas.
obtain a mortgage prior to enlistment or the call toThe most essential thing is that you should inform
active duty may also qualify for a reduction in theiryour lender as soon as it becomes clear that you will
interest rates that can help to lower their mortgagenot be able to make the regular monthly payments
payments while they are away.and inform them of the necessary reasons why. It
People who are in the military often find it hard tomay take some bargaining but in the end most will
make their mortgage payments as long as they areagree to reduce the payment terms when the
still receiving the government salary for active dutymilitary person in your family is on active duty. It
personnel. That's what the Service member's Civilmakes sense; the law doesn't allow the lender to
Relief Act (SCRA) was designed to help. It allowsforeclose until the military person returns home, so
active duty personnel the opportunity to have theirwhy can some form of payment be negotiated?
monthly payments reduced by as much as 6%.Either way, there is no need for anyone on active
Depending on the current interest rate level this maymilitary service to bother about losing their home
turn out to have a huge impact on their monthlywhen they are away. The law is the law; it is illegal to
payments. The sum of money which is saved fromrepossess the home of active duty military personnel
such a reduction does not need to be repaid.until a period of 30-60 days after they have resumed
In order to qualify for such a reduction, your lendernormal civilian life, regardless of how far back they
should be notified as soon as you have gotten yourare on their payments. It doesn't give a lot of time
orders.to make the necessary arrangements on your return
You'll need to have the following in order to apply:home but it is a safety net for those you leave
- A Copy of your military ordersbehind.
- Duty notice