SCRA Foreclosure Protection: A Must-Read Guide

The Servicemembers Civil Relief Act grants active-duty service members certain legal protections, but what does it say about foreclosures? We’ll discuss the SCRA benefits surrounding foreclosure, which will give military personnel and landlords a better idea of navigating these situations.

SCRA Foreclosure Rules and Regulations

According to the Servicemembers Civil Relief Act (SCRA), banks and other lending institutions are not permitted to foreclose on a service member with an active duty status. If they intend to proceed with a foreclosure, they would have to follow a series of steps that change frequently.

Likewise, it is illegal to evict the dependents of service members as long as the military member is rendering military service. This protection applies until a year after their active duty period has finished.

Lenders or other institutions that intend to proceed with foreclosure must secure a court order. However, judges often grant service members a reprieve of up to three months if it’s proven that their military service has prevented them from fulfilling their obligations.

Before a foreclosure occurs, the active duty status of the military member in question should be verified. If it’s proven that the person is serving the nation, a court order is required.

Who is Protected Under the SCRA?

Active duty service members, including reservists, National Guard members, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration) are eligible to receive SCRA protections.

Dependents enjoy selected SCRA protections, too. Military dependents include their spouse, children, and other people who service members provide for in the 180 days before an application.

How To Request for the SCRA Foreclosure Protection?

Unfortunately, no singular document or form would automatically provide active-duty service members with SCRA protection, including protection from foreclosure. For military personnel to be granted SCRA protections, they must gather all required documents and present them to the affected institution.

Here’s a quick guide for service members who intend to activate their SCRA rights:

  1. Gather all necessary documentation: You should secure a copy of your active duty order from your military branch. You can also request one from your military base. It should explicitly mention your military status.
  2. Prepare a letter for the affected person or institution: You should prepare a written notice for the affected entity from which you’re requesting SCRA rights. A verbal notice doesn’t suffice for this purpose.
  3. Provide evidence that you’re on active duty status: You should provide proof that you’re on active duty military service. This can be requested from one’s military branch, particularly your commanding officer.

If you have any further questions regarding SCRA protections, it would be ideal to confer with the legal assistance office of your military base.

Punishment for Non-Compliance

Entities that don’t respect SCRA rights are subject to expensive fines. The Department of Justice reinforces SCRA rights and can enforce them strictly.

Those who violate the SCRA for the first time are usually subject to $55,000 penalties, while repeat offenders may pay $110,000. However, this is the judge’s discretion and is decided on a case-by-case basis.

What If You Signed an SCRA Waiver?

Federal law might grant certain legal protections to those on active service, but things change when an Armed Forces member signs an SCRA waiver. To clarify, the waiver shouldn’t be part of the main contract, and the person in question should have voluntarily signed it.

If an active duty member signed an SCRA waiver, their SCRA rights won’t be honored, and the foreclosure can proceed as usual.

Final Words

While the SCRA may be generally lenient towards active duty service members, proper protocol must be followed to honor their rights. Proving one’s active duty status is required to recognize the rights. The SCRACVS can help service members secure proof that they’re on active duty.


Which protections exist under the Servicemembers Civil Relief Act?

SCRA protections include the six percent interest rate cap, protection from foreclosure and eviction, the right to terminate contracts without penalties, protection against default judgments, and property repossession.

What are the benefits of SCRA mortgage?

Service members who sign the agreement before entering active duty can have their interest rate reduced to six percent.

What is the Military Lending Act and SCRA?

The Military Lending Act (MLA) protects service members and their dependents for credit extension, while the SCRA covers service members on active duty military service.

How does the SCRA work?

Active duty service members can request SCRA protections as long as they provide proof of military service and explicitly request that the SCRA right be honored.

How do I claim my SCRA benefits? 

To have your SCRA rights honored, you must gather the necessary documents and present a written notice of your request.

What does SCRA not cover?

The SCRA doesn’t cover contracts signed after one is on active duty.

What obligations qualify for SCRA relief?

Contracts signed before one enters active duty can be covered by SCRA protections.

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