LAKE HAVASU CITY PROPERTIES ON REAL ESTATE
Servicemembers Civil Relief Act
(formerly known as The Soldiers' and Sailors' Civil Relief Act of 1940).
The
provisions of the Act apply to active duty military person l who had a
mortgage obligation prior to enlistment or prior to being ordered to
active duty. This includes members of the Army, Navy, Marine Corps, Air
Force, Coast Guard; commissioned officers of the Public Health Service
and the National Oceanic and Atmospheric Administration who are engaged
in active service; reservists ordered to report for military service;
persons ordered to report for induction under the Military Selective
Service Act; and guardsmen called to active service for more than 30
consecutive days. In limited situations, dependents of servicemembers
are also entitled to protections.
The
Act limits the interest that may be charged on mortgages incurred by a
service member (including debts incurred jointly with a spouse) before
he or she entered into active military service. Mortgage lenders must,
at your request, reduce the interest rate to no more than six percent
per year during the period of active military service and recalculate
your payments to reflect the lower rate. This provision applies to both
conventional and government-insured mortgages.
If
you can not afford to pay the mortgage even at a lower rate your
mortgage lender may allow you to stop paying the principal amount due
on your loan during the period of active duty service. Lenders are not
required to do this but they generally try to work with service members
to keep them in their homes. You will still owe this amount but will
not have to repay it until after your complete your active duty
service.
Mortgage lenders may not
foreclose, or seize property for a failure to pay a mortgage debt,
while a service member is on active duty or within 90 days after the
period of military service unless they have the approval of a court. In
a court proceeding, the lender would be required to show that the
service member's ability to repay the debt was not affected by his or
her military service.
To learn more about Servicemembers Civil Relief Act call Dean Baker owner/Broker of Lake Havasu City Properties. 928-486-3368 or (888) 854-7210