If you are an active duty military member, or a spouse, then it is important to know that under the Servicemembers Civil Relief Act (SCRA), you have additional safeguards to protect you from an improper foreclosure on your house. The SCRA requires banks and other lenders to take additional judicial steps when dealing with homes of active duty military and their families in recognition of their unique financial stressors that may materialize while deployed, or executing a permanent change of duty station.
Banks and other lending institutions must adhere to the provisions of the SCRA, though they may attempt to negate your rights or simply bypass them out of ignorance.
First it is important to understand the basics of how this process works. If you are a homeowner, you most likely have a monthly mortgage payment. When these payments are not made, a bank or lending institution does have the right to repossess and resale your home.
To do this, banks must go through the proper legal process before properly foreclosing your house. Some States require judicial notice, which generally amounts to a court order, while others do not. Regardless of what State your home is located, these institutions must adhere to the SCRA and follow the procedural safeguards that are in place to protect active duty military and their families.
Those who fall victim to institutions who do not adhere to the SCRA often lose their homes (some times multiple homes), and/or the equity that has built up over time, and the party’s credit score can drop dramatically. Beyond these direct financial injuries, you are likely to incur other collateral consequences, such as lose of security clearances.
An SCRA military attorney can step in during the foreclosure process to protect your rights under the SCRA. The foreclosure process can take up to several years to complete, and even if your home has been foreclosed and sold, the right legal representation can aid in collecting your loses.
Remember, banks and lending institutions must adhere to the SCRA, no matter how much money is owed. Our military lawyers at Military Justice Attorneys, PLLC will demand of the banks to make remedies to you, such as re-claim your home if it has not been sold, collect a settlement for fair market value if it has, claim compensatory damages for lost equity or market value, and ensure that the bank waives arrearages and corrects your credit rating.
To learn more about how a military attorney can rectify an improper military foreclosure, contact Military Justice Attorneys today.