Active Duty Members Get Relief from VA Loan Default

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Relief from VA loan default or foreclosure is available for VA borrowers on active duty through the Servicemembers Civil Relief Act (SCRA).  Many VA borrowers deployed away from home may be able protect their families from financial stress. The Act suspends civil claims against deployed servicemembers and protects their families from going to court, even for VA loan foreclosure.

Make Good on Delinquent VA Home Loans

Those in financial distress who are serving in Operation Enduring Freedom inAfghanistan, Operation Noble Guardian in Kosovo, and Multi-National Forces Sinai inEgyptmay be able to utilize this law.  Some may have delinquent VA home loans. VA borrowers facing delinquency can use the law to reduce monthly payments on other debts while leaving more money to make good on delinquent VA home loans.  

For instance, VA borrowers with large debts on their high-interest credit cards can use the SCRA to help reduce credit card interest rates and balances.  Lower payments mean more money left over each month to get caught up on VA loan delinquencies. A VA borrower would start by contacting the customer service department of the credit card company to request relief under the SCRA law. 

Prevent VA Loan Foreclosure with SCRA

The law helps postpone and even prevent some judgments so that servicemembers can devote their full attention to duty.  The law keeps military spouses from dealing alone with financial stresses caused by looming VA loan foreclosure and other woes.

In many cases, the SCRA can help provide relief from:

  • Mortgage default
  • Lease termination
  • Eviction
  • VA loan foreclosure or non-VA mortgage foreclosure
  • High-interest-rate debt
  • Court proceedings
  • Default judgments
  • Tax payments

The SCRA provides protections in addition to what’s listed.  The law should be interpreted with compassion for service men and women who volunteer and sacrifice to protect our country. For information about veterans loans contact an experienced VA-approved lender.

 

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