Under the just-announced $25 billion national mortgage settlement, members of the military are supposed to have additional protections to guard against wrongful foreclosures. It would seem that the new settlement would bolster the benefits already in place under the Servicemembers Civil Relief Act (SCRA) but that’s not entirely clear.
The issue is this: When must lenders halt foreclosures involving a member of the military who serves in a combat zone? Are copies of orders or a letter from your commanding officer to the loan servicer enough to demonstrate SCRA coverage?
There’s a big mortgage debate in Washington and vets are very much in the middle. The question is whether home loans should require at least 20 percent down.
Under new Wall Street Reform rules enacted last year in Washington borrowers in some cases will need 20 percent down.