House of Representatives Now Has to Act
The Senate voted unanimously to pass legislation to help protect the homes of members of the armed forces from foreclosure. The bill would extend through 2017 a provision that safeguards active duty servicemembers against losing their homes for one year following the completion of their service in the field.
The current one-year safeguard from foreclosure will expire at the end of 2015 and revert to the three-month protection that was originally enacted under the Servicemembers Civil Relief Act (SCRA).
In 2008, Congress first extended the period of foreclosure protection under the Servicemembers Civil Relief Act (SCRA) from 90 days to nine months in response to a report by the Commission on the National Guard and Reserves. The report found that “the threat of foreclosure is a stressor that need not be placed on members of the armed forces during the first months of their return to civilian life.”
In December 2014, Congress extended the foreclosure protection until January 2016. Unless the House of Representatives acts by the end of this year, the period of foreclosure protection will revert back to just 90 days starting in 2016.
The SCRA provides for the temporary suspension of judicial and administrative proceedings and actions that may adversely affect servicemembers during military service. Key provisions include limiting the interest rate on debts incurred prior to a person’s entry into active duty military service, prohibiting military families from being evicted from rental or mortgaged property; and prohibiting military families from having their life insurance canceled or being taxed in multiple jurisdictions.
(It seems very unlikely that the House of Representatives will act before the end of the year. But they may very well take this bill up as soon as they return and make the effective date retroactive to January 1st 2016.)