Active Duty personnel deployed overseas and unable to pay their VA loans may be entitled to default or foreclosure relief under the Servicemembers Civil Relief Act.
Certain deployed military members are entitled to relief from VA loan default or foreclosure through the Servicemembers Civil Relief Act (SCRA). Military families make tremendous sacrifices when their loved ones are deployed overseas. A VA loan
default or foreclosure shouldn’t add to the stress. The SCRA may help a qualified military member to deal with debt problems that arise out of financial contracts entered into prior to active duty. By suspending civil claims against deployed servicemembers, it may also protect their spouses from having to deal with default or foreclosure while their loved one is away.
In many cases, the SCRA can help provide relief from:
- Mortgage default
- Lease termination
- VA loan foreclosure or non-VA mortgage foreclosure
- High interest rate debt
- Court proceedings
- Default judgments
- Tax payments
Catch up on Delinquent VA Home Loan Payments
Military members serving in Operation Enduring Freedom in Afghanistan, Operation Noble Guardian in Kosovo, Multi-National Forces Sinai in Egypt and even on U.S. soil may be able to utilize this law to catch up on VA home loan payments. If delinquent VA home loans are part of a deployed servicemember’s financial woes, then the SCRA law can be used to reduce monthly payments on credit cards and other debts. This may free up money for payments toward delinquent VA home loans.
VA borrowers may begin the debt reduction process by contacting the customer service departments of their creditors to request relief under the SCRA law. Creditors are asked to adhere to that law and to extend compassion to military men and women who volunteer their lives in service to our country.
VA Loan Foreclosure Prevention
The SCRA law may also be used to obtain relief from a VA loan foreclosure. Foreclosure judgments may be postponed, and even prevented, in order for servicemembers to focus their full attention on duty. This portion of the law also protects military spouses from having to deal with legal stresses alone.
For more information about VA loans contact an experienced VA-approved lender. For more information about the protections provided by SCRA, contact a qualified licensed attorney.