President Obama signed into public law No: 114-142, S.2393 – Foreclosure Relief and Extension for Servicemembers Act of 2015, on March 31, 2016. This law provides an extension through 2017, for foreclosure protection under The Servicemembers Civil Relief Act – formerly known as The Soldiers’ and Sailors’ Civil Relief Act.
The Servicemembers Civil Relief Act (SCRA) provides specific
financial and foreclosure protection for our military women and men that have debt originating before their call to active service.
It is important for creditors and landlords to note some of the provisions of protection in this act:
- State Tax Relief
- Termination of Property Leases
- Eviction Protection
- Foreclosure and Forced Sale Relief
- Judicial Relief – does not include criminal
- Ability to Terminate Automobile Leases
- 6% Cap on Credit Interest Rates
- Credit Rating Safeguards
- Insurance Cancellation and Reinstatement protections
There are specific requirements which must be followed to insure the protections for the servicemembers. The credit or mortgage borrowers must request the protection under this act. The loan or debt must have originated prior to the current active military service. The lenders, landlords, creditors, insurance companies, etc. must be notified, in writing, the servicemember is requesting protection under The Foreclosure Relief and Extension for Servicemembers Act of 2015.
This is a general list of provisions. Further specific information is available at: https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf
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