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#17094 - 05/07/02 09:45 PM SSCRA - Recovery Alternatives
Anonymous
Unregistered

First let me start by saying this is a hypothetical scenario:
George & Martha Washington are married. George is in the reserves. George is called up for 1 yr to active duty. George & Martha undergo marital strife, get separated and then file for divorce.

ABC Mortgage is the 1st lien holder and is not getting paid.

George is afforded all rights entitled under SSCRA.

ABC Mortgage is considering alternatives to satisfy its loan.

If both George and Martha agree to a Deed in Lieu of Foreclosure giving the property to ABC Mortgage, is this allowed under SSCRA? Does ABC have to get some type of order from a court allowing this?

Even given the logistical hurdles with trying to get all parties to sign on the dotted line (with George being at his active duty station), is a D-I-L allowed without going through the courts?

I have reviewed information I have obtain from the BOL website and other sources and can't seem to place any statute (at least in plain understandable English) that seems to address this.

I suppose one other alternative would be for George and Martha to voluntarily place the house up for sale, find a buyer and satisfy the mortgage through the sale of the property (not an easy thing to do while going through divorce proceedings).

I would appreciate any assistance anyone might be able to provide in steering me to an answer here (with statutes to back this up if possible).

Any other alternatives would also be welcome here.

Thanks in advance for your collective assistance.

jon m

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#17095 - 05/08/02 12:53 AM Re: SSCRA - Recovery Alternatives
Andy_Z Offline
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You are in unchartered waters. If you want to do this, get adequate counsel. This would not be a deal you would want to have to un-do years from now.
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#17096 - 05/08/02 12:45 PM Re: SSCRA - Recovery Alternatives
Gotwood Offline
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Joined: May 2001
Posts: 715
Section 517 of the SSCRA pertains to written agreements entered after commencement of military service. It says that nothing in this Act (sections 501 to 593) shall prevent the modification, termination, or cancellation of any contract, lease, or bailment or any obligation secured by mortgage, trust deed, lien or other security in the natur of a mortgage... pursuant to a written agreement of the parties thereto (including the person in military service)....

Therefore, if the parties agree, you can take the property through a deed in lieu of foreclosure.

Like Andy said, I would run this by the legal department to insure the written agreement is worded correctly.

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