How The Servicemembers Civil Relief Act (SCRA) Can Help You Pay Your Mortgage
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Serving in the armed forces requires the full focus and attention of those who serve, but that doesn’t mean that their civilian obligations go away. Mortgage payments can be tough to make on a regular basis when you aren’t serving your country, let alone when you are putting your life on the line far away from home.
Understanding this, the U.S. Government enacted the Servicemembers Civil Relief Act (SCRA) in 2003. The SCRA helps make sure that military members can keep their homes even if they are struggling with mortgage payments.
Who Is Eligible?Any people in the military who are on active duty, as well as active reservists, are eligible for assistance under the Servicemembers Civil Relief Act. Dependents of active military personnel can also take advantage of some of the benefits of the act.
How Does The SCRA Help Servicemembers?There are a number of provisions in the SCRA that can be of assistance to military members looking to stay on top of their mortgage. For one, the servicemember can cap the interest rate for their mortgage loan at six percent for the time they are on active duty if they can show that their service significantly affects their ability to pay the mortgage. Depending upon how severely your service affects your ability to make your mortgage payments, you may also get complete relief from mortgage payments on a temporary basis under the SCRA.
What Does The SCRA Mean For Servicemembers?The SCRA is designed to aid military members with hardships brought on by their service. It is not intended to help individuals avoid their obligations. Military members who take on a mortgage after their service begins will not be eligible for this plan, nor will those who are still able to meet their obligations as easily as a civilian. However if military service presents a true obstacle to managing one’s mortgage, the SCRA can help.
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