How does SCRA apply when the spouse of a servicember only signs the note and the mortgage is signed by both?

The spouse (on the mortgage only), then enters the military.

Does 6% rule apply?
What if loan goes into foreclosure?

Sec. 527 http://www.bankersonline.com/regs/201/sscra.html#527 tells us the loan must be to the SM or the SM and the SM's spouse to qualify for the 6% rate. But I have to say, I wouldn't want to fight it. The decision is yours as the law is specific and your SM isn't obligated, but do they commingle all debts and income, was their budget affected by the SM joining?

As to foreclosure, Sect. 533 is similar in that it is discussing the obligation of the SM and you indicate the SM is NOT obligated to pay.

Sec. 533. MORTGAGES AND TRUST DEEDS.

(a) MORTGAGE AS SECURITY-

This section applies only to an obligation on real or personal property owned by a servicemember that--

(1) originated before the period of the servicemember's military service and for which the servicemember is still obligated; and

(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.


I believe the lender has leverage, but also has reputational risk regardless.

I read the question to say that the spouse who signed the note put on a uniform. I think that would trigger the SCRA protections.

If the spouse who was on the Note enlists, certainly the 6% applies. I read "spouse on the mortgage only" to mean the deed, the security instrument.

Apologies if I read the question wrong.