Military homeowners with a VA loan may be interested in a recent proposal. Newly introduced legislation could give them even more mortgage protection.
Representatives Elijah Cummings, Bob Filner and Adam Smith spearhead the bill. It would extend the Servicemembers Civil Relief Act. The proposal would give protection to more military homeowners and help them avoid eviction.
“Our troops fighting overseas in Iraq or Afghanistan should not have to fight here at home just to keep a roof over the heads of their loved ones,” Cummings said. “This bill will expand current law to protect more of our brave men and women in uniform from losing their homes while they protect our freedoms abroad.”
Current regulations give strong foreclosure protection to active duty members of the military. This addition to a defense bill would give protection to those who are part of contingency operations, such as national emergencies. In addition, surviving spouses of those lost in action would also receive greater protection.
Currently, servicemembers who default on their home loans can have the foreclosure process halted for nine months. The bill would extend this timeline to 12 months. In addition, it would give more severe penalties to those who violate the SCRA. Initial fines would double from $55,000 to $110,000. Repeat offenders would receive a fine of $220,000 for each violation after that.
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