The Servicemembers Civil Relief Act (SCRA) Protects Active Duty Military Personnel from Foreclosure

17 Sep The Servicemembers Civil Relief Act (SCRA) Protects Active Duty Military Personnel from Foreclosure

The Servicemembers Civil Relief Act (SCRA), signed into law on December 19, 2003, limits collection tactics and enforcement of claims against active duty military personnel.  In this post, I will discuss how the SCRA protects activy duty military personnel from foreclosure.

Section 303 (Mortgages and Trust Deeds) of the SCRA forbids non-judicial foreclosure on real property owned by a servicemember based on an obligation created before entering active military duty.

If an action in foreclosure is filed during or within 90 days after a servicemember’s period of military service AND the servicemember’s ability to pay the obligation was materially affected by his/her military service, then the court may 1) stay the proceedings for a period of time and/or 2) adjust the obligation to preserve the interests of all the parties (i.e. the mortgage holder and the servicemember).  Any foreclosure sale held during or within 90 days after the servicemember’s military service is NOT valid unless the court has issued an order allowing the foreclosure sale.

It is a criminal offense to knowingly violate this provision of the SCRA.

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