Banking Regulations Compliance - Changes to SCRA Extended

A temporary amendment to the Servicemembers Civil Relief Act (SCRA), which was originally set to expire on 12/31/2010, was recently extended for two more years.  Thus, the amendment will now expire 12/31/2012.  The original amendment extended the period of time (from 90 days to 9 months), following active service, during which legal action against real estate debt shall not be brought, or the sale, foreclosure or seizure of real estate shall not be valid.

What does this mean to you?  You need to update the following section of your SCRA Notice to reference the 9 months timeframe:

What Legal Protections Are Servicemembers Entitled To Under the SCRA? 

The SCRA states that, in a legal action to enforce a debt against real estate that is filed during, or within 9 months after the servicemember’s military service, a court may stop the proceedings for a period of time, or adjust the debt.  In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within 9 months after the servicemember’s military service unless the creditor has obtained a court order approving the sale, foreclosure, or seizure of the real estate.

Published
2011/01/07
Deb Irving