The Service Members Civil Relief Act (SCRA) provides certain legal protections and debt relief to members of the Armed Services on active duty or active military service, and their dependents. The SCRA offers many protections, including the following protections related to mortgage loans:
- While servicemembers are on active duty, it limits the interest rate to a maximum of 6 percent for a mortgage loan obtained prior to his/her entering active duty.
- In a legal action to enforce a real estate debt, sale, foreclosure or seizure of a property cannot occur without a court order during the servicemember’s active military service, and for twelve months thereafter.