There are protections for active military members and veterans facing foreclosure.
The Servicemembers’ Civil Relief Act (SCRA) protects military personnel and activated National Guard troops by postponing or suspending certain civil obligations while they're called to duty — and those obligations can include mortgage payments. As a courtesy, some mortgage lenders may also allow active duty military personnel to stop paying the principal amount due on their mortgages until they complete their active duty service.
Under the SCRA, service members on active duty are also entitled to a six percent interest rate cap on everything except student loans.
In order to get this temporary interest rate reduction, you have to write a letter to your mortgage lender and include a copy of your military orders no later than 180 days after the date you're released from active duty military service.
Veterans facing foreclosure can sometimes get help from the federal government. They should contact the Department of Veterans Affairs (VA) and the Department of Housing and Urban Development (HUD). There may also be state programs available for assistance.
Sadly, sometimes the government can't or won't help military families facing foreclosure. Veterans in particular will often struggle financially after serving, and there aren't always easy solutions available.
Our firm was founded by a veteran who served as a Marine Lieutenant in Vietnam. In part because of his experiences, we care deeply about military service members and their families, and we want to help you get back on track financially if you're in over your head.
If you're facing foreclosure, bankruptcy may be an option to consider, and we're happy to walk through that option with you. Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.