Mortgage Foreclosure - SCRA

Posted By: Refresher2020

Mortgage Foreclosure - SCRA - 10/19/20 11:39 PM

Reviewing our SCRA Servicing P&P and found that it hadn't been updated to reflect the changed prescribed in the Economic Growth, Regulatory Relief, and Consumer Protection Act. Just so I’m sure I read the SCRA Act correctly....

Under the Act, real property secured by a mortgage, deed or other mortgage security which is owned by a servicemember that was originated before the period of the servicemember’s military service and for which the servicemember is still obligated cannot be foreclosed upon, sold, or seized during their period of military service or within one year after service without a court order or the written waiver by the servicemember. A court may, on its own motion, and shall, upon application by a servicemember whose ability to comply with the obligation is materially affected by military service, stay the proceedings or adjust the obligation to preserve the interests of all parties at any time during the period of military service or within one year thereafter.

The only time a lender can deviate (act sooner) from the 1 year after military service has ended is if by court order or voluntary waiver.
Posted By: Andy_Z

Re: Mortgage Foreclosure - SCRA - 10/30/20 05:32 PM

90 days went to a year. Check out the note in red at the top of the page on 3953, linked below.


https://www.bankersonline.com/regulations/scra-3953