These federal protections are designed to safeguard active-duty service members from unfair financial and legal actions while serving.
SCRA Mortgage and Foreclosure Protections
The SCRA has special provisions regarding mortgages and deeds of trust. These provisions only apply to obligations on real or personal property owned by a servicemember that began before military service and is secured by a mortgage, trust deed, or something similar. If a servicemember has an obligation to which these provisions apply, the SCRA offers protections against actions on the mortgage or trust deed, as well as sale or foreclosure.
If a party files an action to enforce an obligation under a mortgage or deed of trust during or within one year of a servicemember’s military service, the court may either stay (put on hold) the proceedings or adjust the obligation, such as a change in payment amount. If the servicemember can demonstrate that their ability to comply with the obligation is materially affected by military service, the court is required to enter a stay or adjust the obligation.
The SCRA offers stringent protections against the sale, foreclosure, or seizure of property for a breach of an obligation against the property. The SCRA provides that no sale, foreclosure, or seizure is valid if made during or within one year of military service. There are two exceptions to this rule. The first is when a court grants an order before the sale, foreclosure, or seizure, with a return made and approved by the court. The second is when the parties execute a valid waiver under the waiver provisions of the SCRA, as outlined in Section 3918.
