Featured News 2013 Your Rights as a Military Member Dealing with Foreclosure

Your Rights as a Military Member Dealing with Foreclosure

The Servicemember's Civil Relief Act is a government act that determines how to reduce loan obligations and prevent court judgments for those that are serving our country. This is a federal law that concerns those on active duty who may be having trouble with financial affairs. Because military members rely on the government for support, it does not seem fair that they may be unable to pay for their housing and then have their home taken away by the government.

That's why the Servicemember's Civil Relief Act exists. This law can help to reduce the interest rates on debts that militia members are dealing with and protect these people from all court actions and repossessions. In addition, tenants that are in the military can receive compensation for lease cancellations and evictions. Laws also protect employment for servicemembers after they are out of the military. This act applies to all servicemembers including the National Guard and the commissioned corps of the National Oceanic and Atmospheric Administration.

Also, the commissioned corps of the Public Health Service is protected under the act. If you are suffering from a legal or financial issue concerning your home and you are a part of one of these military and government agencies then you should make sure that you are exercising your rights. The government recognizes that some military positions pay more than others, so if you are drowning in debt because your pay is not adequate the government might be able to help.

Those who are under the SCRA are entitled to a 6% interest rate cap on all financial obligations except for student loans. This includes all things that have to do with housing such as mortgages. In order to qualify for this interest rate cap, you will need to prove that whatever loan you are handling is one that you took out before you began active duty. For example, if you purchased a home before going on active duty and are not struggling to pay the mortgage on the property then you are qualified. In addition, if you cannot pay a loan at the pre-service interest rate because of the payment that you are getting from the military, this is another reason that you may qualify under SCRA.

If you are currently a tenant at an apartment or condominium complex and are having a hard time making rent, the SCRA has provisions for you as well, Tenants who are in active military service even though they are in the midst of a lease have the right to get out of their obligations without any additional penalties. You will want to send a copy of your orders as well as a notice of intent to terminate your residency to your landlord. You cannot be penalized for failing to fulfill the lease because of the importance of the military.

If you are facing potential eviction because of a lack of payment, then the SCRA required that your landlord or homeowner allow a three month grace period. Even if rent is not being paid, all military members are allowed to remain in their homes or keep their families in a home for at least three months. Rent in military situations should be capped at $2,400 though that cost is adjusted by Congress depending on inflation.

Unfortunately, landlords are still permitted to serve a termination notice for a lack of rent payment against a military member. Still, a judge will be able to determine whether or not a person's status in the military has affected his or her ability to pay rent, and may decide to void the lawsuit. If you want more information about how your position in the military affects real estate and foreclosure concerns, then discuss your case with an individual at the firm today!

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