Help for Veterans and Servicemembers

Military personnel and their families have special protections from foreclosure through the Servicemembers Civil Relief Act (SCRA), the California Military and Veterans Code section §§ 400 to 409.13 and Assembly Bill 2365 which protects California National Guard members and Reservists from financial obligations while they are deployed overseas.

When a military member is facing a foreclosure, the SCRA requires judicial foreclosure proceedings whereby a court order is required before the service member’s home can be sold in a foreclosure sale. In general, the SCRA provides many protections for military members. Some of the relief that it provides include:

1. Mortgage relief
2. Termination of leases
3. Protection from eviction
4. A 6% cap on interest rates
5. Stay of proceedings
6. Reopening of default judgments

SCRA Eligibility

To be eligible for protection under the Servicemembers Civil Relief Act:

1. Must have had your mortgage prior to being ordered to active duty or enlistment.
2. You must be on active duty as a member of:
   • the Coast Guard, Air Force, Army, Navy or Marine Corps
   • a reservist ordered to report for military service
   • a national guardsperson on active service for more than 30 consecutive days
   • on active service as a commissioned officer in the Public Health Service Commissioned Corps
   • on active service as a commissioned officer in the National Oceanic and Atmospheric Administrations Corps
   • a citizen ordered to training under the Military Service Act

Fannie Mae Support for Military Homeowners

Fannie Mae has special programs available for military homeowners who are struggling with their mortgages. Under their “Unique Hardships” guidelines a forbearance of up to six months may be granted which lowers or suspends mortgage payments. Servicemembers or surviving spouses who may be eligible are encouraged to visit www.KnowYourOptions.com/Military or call the Fannie Mae Military Support Hotline, 877-MIL-4566.

More Information

• U.S. Armed Forces Legal Assistance
• HUD’s Questions & Answers for Reservists, Guardsmen and Other Military Personnel
• U.S. Department of Justice: safeguarding the rights of service members and veterans
• Legal Challenges to Foreclosure