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#2277439 - 11/01/22 08:28 PM Hypothecated collateral and SCRA HUD Notice
liventhedream Offline
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Joined: Mar 2006
Posts: 186
Would the grantor of their residential property as collateral to pledge to someone else's loan need to receive a SCRA HUD notice? The only thing they are doing is pledging there home as collateral and not responsible for paying the loan.

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2277446 - 11/01/22 09:31 PM Re: Hypothecated collateral and SCRA HUD Notice liventhedream
rlcarey Offline
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Joined: Jul 2001
Posts: 81,309
Galveston, TX
I am not aware that the servicemember has to be on the note, it just has to be their property.
The opinions expressed here should not be construed to be those of my employer:

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#2278542 - 12/07/22 04:06 PM Re: Hypothecated collateral and SCRA HUD Notice liventhedream
Andy_Z Offline
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Joined: Oct 2000
Posts: 27,646
On the Net
The ML 2006-28 actually says the letter isto, "Be sent to all homeowners who are in default on a residential mortgage;" In this case the homeowner and the person in default are two different people. I would also say that the services offered in the counseling by Military OneSource and SCRA benefits belong to the servicemember and not the homeowner.

If I was sending it to one or the other I'd go with the SM and leave it that way as making a disclosure like this has no ill effect if it isn't applicable. I would maintain that (I believe) the counselling is available for other than mortgage debts but this notice addresses mortgages, not personal debts. You could also have potential privacy issues when you tell the homeowner the SM is not paying. I've never really figured out a good solution to that argument as the homeowner should be made aware, in my opinion.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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