Mortgage Matters

Host: Typin’ Todd, an NBKC mortgage executive

Welcome to Mortgage Matters, National Bank Of Kansas City’s blog on the different types of mortgages, real estate market, and other financial matters. Give us your feedback and ask Todd questions.

Are you concerned about Foreclosure while fighting for your country?

Posted: Friday, August 22, 2008

Don't be. The Servicemembers Civil Relief Act (SCRA) of 2003, generally prohibits lenders from foreclosing on a loan if you, the borrower, or the borrower's spouse is on active military duty. In addition, the law states that borrowers may qualify for a reduction in their interest rate or even an outright suspension of their mortgage payment if certain conditions are met.

SCRA also protects renters who are on active duty. It includes one provision that can stave off a landlord's eviction notice, and another that can allow a soldier to terminate an existing lease without penalty if he or she is called to war.

The SCRA rules are complex, and not every serviceman or servicewoman qualifies. For example, those who get a dishonorable discharge often are barred from seeking help under SCRA. And, for obvious reasons, the law doesn't protect soldiers or their spouses who lied about their income on their loan applications.

The personnel officer or the commanding officer of your spouses military unit should be able to provide more information about SCRA. The regional office of the Department of Veterans Affairs, which can be found under the "Federal Government" headings of your local White Pages, can supply information as well. In addition, visit the VA's website or the site operated by the U.S. Department of Housing and Urban Development.