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Mortgage lenders may not foreclose the property when a service member is on active duty

By: Brian Kelly

Mortgage lenders may not foreclose, or seize property for a failure to pay a mortgage debt, while a service member is on active duty or within 90 days after the period of military service unless they have the approval of a court. In a court proceeding, the lender would be required to show that the service member's ability to repay the debt was not affected by his or her military service.

When you or your representative contact your mortgage lender, you should provide the following information:

-   Notice that you have been called to active duty;
-   A copy of the orders from the military notifying you of your activation;
-   Your FHA case number; and
-   Evidence that the debt precedes your activation date.

HUD has reminded FHA lenders of their obligation to follow the Act. If notified that a borrower is on active military duty, the lender must advise the borrower or representative of the adjusted amount due, provide adjusted coupons or billings, and ensure that the adjusted payments are not returned as insufficient payments

Source: U.S. Department of Housing and Urban Development


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Date Added: 2009-04-20 Views : 298