Senate Extends Foreclosure Protection for Military; House Approval still Required

Amid the wrangling over the
budget and the CIA report the Senate did manage to extend some extra
foreclosure protections
for military service members who have recently returned
from active duty.  In a unanimous voice
vote on Thursday the Senate passed S2404 which makes permanent a portion of the
Servicemembers’ Civil Relief Act (SCRA) which would have expired at the end of
this month.

The extensions, originally
incorporated into the act in 2008, forbids banks from foreclosing on a member
of the military for a period after that member returns from active duty as long
as the subject mortgage was taken out prior to active duty.  The original period of nine months was
lengthened to a full year
in 2012 under a bill introduced by Senator Sheldon Whitehouse
(D-RI).  It was that action that was set
to expire at the end of this December returning the period of protection to the
pre-2008 level of only 90 days.

The longer period of protection
had been sought be reservists and National Guard memberships who, when called
up during the Iraq War, often had to give up full-time jobs to honor their much
lower-paid military commitments. 

The SCRA also contains protections
against some evictions and repossessions of autos and other personal property
while a service member is on active duty.

The House of Representatives has
yet to act on the bill or on companion legislation (H5730 and H5731) introduced
in the House.

Article source: http://www.mortgagenewsdaily.com/12122014_military_foreclosures.asp

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