Military Foreclosures

Benefits Available for Military Members Facing Mortgage Foreclosure
Veterans and military members can receive certain benefits if they are facing mortgage foreclosure. In honor of the service of these military members, the government has created programs that help distressed homeowners be able to afford their mortgages once again. A military member can visit websites for the Department of Housing and Urban Development ( and the Department of Defense ( to learn more about the eligibility requirements for these government programs.

The Servicemembers Civil Relief Act - This Act protects those service members who are on active-duty. Under the SCRA, the class of protected members has been expanded from those under the former Soldiers and Sailor's Civil Relief Act of 1940. Under the SCRA, active-duty Reservists, National Guard members and dependents of military members may qualify for housing relief. In any civil proceeding, including foreclosure, a military member is entitled to a 90-day automatic stay. Military members also may not be evicted from their homes under the SCRA.

To take advantage of the SCRA, military members must apply for relief under the Act. The protections that are offered through the SCRA are not automatically triggered. A military member is required to show that he or she is suffering a "material effect" in his or her personal financial situation. Free legal assistance may also be available to members of the military under the SCRA. Under the SCRA, the main benefit that military members will receive is that interest rates for mortgage payments will be capped at a maximum of six percent.

The Foreclosure Protection Act - Another Act that military members should have a full knowledge about is the Foreclosure Protection Act. This Act allows military members to receive foreclosure protections for up to nine months.

Expanded Provisions of the Homeowners Assistance Program
Under the Homeowners Assistance Program, military members will be able to receive a reimbursement if they are ordered to re-locate and must sell a home at an undervalued price. The home must be purchased prior to June 6, 2006, in order to qualify for this reimbursement program. Also, a military member must experience at least a 10 percent decrease in the equity of their homes prior to sale.