July 1, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced a revision to the Notice of Disclosure form that explains the rights of active duty military personnel and their dependents under the Servicemembers Civil Relief Act (SCRA).
The Act mandates that during times of war, military members who are on active duty are entitled to mortgage protection in the form of mortgage relief, such as the lowering of their mortgage interest rate to no more than six percent, and foreclosure protection such as stopping foreclosure proceedings against certain military personnel who are recalled to active duty unless the creditor has obtained a court order approving it. Courts may stop the proceedings for a time or adjust the debt.
Currently, a written request and a copy of military orders must be sent in order for the service member to get interest rate relief or foreclosure protection under the Act. That doesn’t change.
The new revision to the Notice of Disclosure form notifies the service member that after sending the written request there is no further requirements on the part of the service member to alert their lender of their military status in connection with a foreclosure.
The burden now falls on the lender to make that determination and to send a copy of the Notice of Disclosure to the homeowners who are in default of their mortgage.
“We all stand behind the men and women of our military when they are called upon to serve,” said HUD Secretary Shaun Donovan. “The Servicemembers Civil Relief Act enables our armed forces to focus on their mission abroad, without worrying about their families at home.”
Service members who seek mortgage or foreclosure relief can call 1-800-342-9647 or visit www.militaryonesource.com/scra for additional information.
Tags: HUD, Servicemembers Civil Relief Act, SCRA, military members, mortgage relief, mortgage protection, foreclosure protection