Foreclosure Protection Bill for Servicemembers Passes in Both House, Senate

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Author: Brian Honea December 15, 2014

S.2404 Foreclosure Protection Servicemembers

The U.S. Senate and the House of Representatives have both unanimously voted to pass a bill that give military servicemembers who have recently returned from duty added protection from foreclosure, according to an announcement from Senator Sheldon Whitehouse (D-Rhode Island), who introduced the bill in May.
S.2404, also known as the Foreclosure Relief and Extension for Servicemembers Act of 2014, unanimously passed in the Senate on Thursday, December 11 and in the House on Friday, December 12, according to the announcement from Whitehouse.
The bill extends until January 2016 a provision that sets one year as the time a servicemember’s house is protected from foreclosure upon his or her return from active duty, if the mortgage was obtained before the servicemember was an active member of the military. The Commission on the National Guard and Reserves had submitted a report that prompted the foreclosure protection extension from 90 days to nine months in 2008. The period was extended to nine months as part of the Servicemembers’ Civil Relief Act (SCRA) in 2008 and lengthened further to one year in 2012 as part of a bill introduced by Whitehouse.
The one-year period was set to expire at the end of December and would have reverted back to its pre-2008 level of 90 days at the beginning of 2015. Whitehouse’s bill that he introduced back in May called for the permanent adoption of the one-year foreclosure protection period.
“After fighting for our country overseas, our troops shouldn’t have to fight to keep a roof over their heads when they return home,” Whitehouse said. “Servicemembers returning from active duty often need time to regain their financial footing, particularly those in the National Guard and Reserves who give up their full-time jobs to fight for our freedom. We should ultimately pass legislation to make this protection permanent, but I’m glad we were able to secure peace of mind for our veterans for one more year.”
The SCRA contains other protections for military members and their families from auto repossessions and other personal property while the servicemember is on active duty. Under the current law, servicemembers and their families cannot be evicted from housing due to nonpayment of rent that is less than $1,200 per month while the servicemember is on active duty..

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