Even though Memorial Day has come and gone, a number of legislators are still working to extend the protection military homeowners receive. This is good news for those serving overseas, as concerns on the home front can affect your well-being.
While the Servicemembers Civil Relief Act provides a number of protections for members of the armed services, mortgage relief is perhaps one of the most important. Currently, the sale, foreclosure of seizure of your home is not valid if made within 90 days of being on active duty. However, new legislation could extend both this time and who qualifies.
Most recently, Senator Jack Reed spearheaded a bill to extend the home loan protections of borrowers with mortgages backed by the Department of Veteran Affairs. Since military personnel fighting abroad should not have to fight to keep a roof over their families' heads, this should be welcome relief for borrowers with VA loans.
If this bill passes and you have a VA loan, you will have a longer foreclosure protection timeline. Currently, if have a VA loan and face financial hardship that threatens your homeownership, the foreclosure process is delayed for nine months if you are away. Under the proposed legislation, you get a year of protection. In addition, surviving spouses will also receive this benefit.
Active duty military personnel also qualify for a number of housing and credit protections under the SCRA. However, some feel there are still some grey areas. Some lawmakers say this language needs to be clearly defined. For example, there is sometimes confusion as to what qualifies as military orders. Since these orders are the key to receiving housing protection under the SCRA, it is important that lenders know what exactly qualifies to avoid any confusion. Legislators hope to firm up these definitions. This will make it easier for you to work with your lender if you are deployed in any capacity.
Giving a military homeowner peace of mind during deployment is essential. While serving overseas, you have enough to be concerned about. Worrying whether you will still have a home when you return from the front should not be one of them.
Arming yourself with the most up-to-date housing market details is a great way to stay informed of current mortgage loan rates. Freedom Mortgage offers some of the most extensive news, homeowner tips and personal finance information in the industry.
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