The Servicemembers Civil Relief Act (SCRA) provides significant foreclosure protections for qualifying active-duty military personnel. Key protections can include a court-order requirement in certain non-judicial foreclosure proceedings, a 90-day stay that may be requested in civil proceedings, and a 6% interest rate cap on pre-service mortgages. SCRA foreclosure protections depend on the type of proceeding, the timing of the mortgage obligation, the servicemember's military status, and the specific relief being requested or required under applicable law.
In certain circumstances, the SCRA may require a court order before a non-judicial foreclosure or sale can proceed — generally where the mortgage obligation predated the servicemember's active duty, the servicemember made at least one payment before service, and the servicemember is on active duty or within the protected period after. Whether and how this applies depends on the type of proceeding, the timing of the loan, military status, and applicable law. Servicemembers should verify their rights with qualified legal counsel.
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All pre-service debts — including mortgages — are capped at 6% APR during active duty. The excess interest is permanently forgiven, not deferred. You must request the cap in writing with a copy of your orders. The lender must grant it. Some lenders (Chase, USAA, Navy Federal) apply it automatically.
Servicemembers can request a 90-day stay of any civil proceeding — including foreclosure. Must be granted unless the court finds your military service does not materially affect your ability to participate. Can be extended beyond 90 days.
Before a default judgment can be entered against a servicemember, the plaintiff must file an affidavit stating whether the defendant is in military service. If the defendant is in service, the court must appoint an attorney. Default judgments entered without SCRA compliance are void.
The SCRA covers all active-duty members of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard, as well as activated Reserve and National Guard members. Public Health Service and NOAA officers on active duty are also covered. Protection under key provisions may extend for a period after active duty ends — including certain court-order protections — meaning a servicemember who recently left active duty may still be protected. Because the exact scope and timing depend on the statute, the type of proceeding, and applicable law, servicemembers should confirm their rights with qualified legal counsel.
Dependents and spouses in some circumstances may also invoke certain SCRA protections, though the specific scope depends on the provision and applicable case law. Servicemembers should consult with qualified legal counsel to understand how the SCRA applies to their particular situation.
When contacting your servicer about SCRA protections, it is generally advisable to do so in writing and to keep copies of all communications. Servicemembers may wish to:
Beyond SCRA protections, servicemembers may be eligible for additional mortgage assistance programs including VA loan-specific options for those with VA-guaranteed loans, FHA loss mitigation for FHA-insured mortgages, and conventional loan modification through Fannie Mae and Freddie Mac programs. Dream Financial Management can help servicemembers evaluate which options may apply to their circumstances.
SCRA violations can invalidate the entire foreclosure. Dream Financial Management helps servicemembers assert SCRA protections, enforce the 6% cap, and stop illegal foreclosures. Since 1994. Free consultation.