At CAPITAL LAW CENTER, Robert W. Carlson & Associates, P.A., we can help qualified Active Duty Military personnel prepare their financial documentation as well as work with their mortgage lender to provide financial relief from their mortgage payment per the terms of the Service Members Civil Relief Act of 2003. As a “Thank You” to our military personnel, we are providing this service to active duty Military members at a discount. If your hardship is due to a lost loved one who was lost while deployed in Iraq or Afghanistan, please ask us about our pro-bono work. Please speak to your Case Manager for more information. CAPITAL LAW CENTER, Robert W. Carlson & Associates, P.A. offers our full support to our troops and their families. We thank you for your commitment and sacrifice.

Service Members Civil Relief Act of 2003 (SCRA) Common questions and answers for reservists, guardsmen and other military personnel about mortgage payment relief and protection from foreclosure provided by the Service Members Civil Relief Act (formerly known as The Soldiers’ and Sailors’ Civil Relief Act of 1940).


Who is eligible?
The provisions of the Act apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard; commissioned officers of the Public Health Service, the National Oceanic and Atmospheric Administration engaged in active service; reservists ordered to report for military service; individuals ordered to report for induction (training) pursuant to the Military Selective Service Act; and guardsmen called to active service for more than 30 consecutive days. In limited situations, dependents of service members are also entitled to protections.

Am I entitled to debt payment relief?
The Act limits the interest that may be charged on mortgages incurred (or acquired) by a service member (including debts incurred jointly with a spouse) before he or she entered into active military service. Mortgage lenders must, at your request, reduce the interest rate to no more than 6% per year during the period of active military service and recalculate your payments to reflect the lower rate. This provision applies to both conventional and government-insured mortgages.

Is the interest rate limitation automatic?
No. To ask for this temporary interest rate reduction, you must submit a written request to your mortgage lender and include a copy of your military orders. The request may be submitted as soon as the orders are issued but no later than 180 days after the date of your release from active duty military service.

Am I eligible even if I can afford to pay my mortgage at a higher interest rate?
If a mortgage lender believes that military service has not affected your ability to repay your mortgage, they have the right to ask a court to grant relief from the interest rate reduction. This is not very common.

What if I can’t afford to pay my mortgage even at the lower rate?
Your mortgage lender may let you stop paying the principal amount due on your loan during active duty service. Lenders are not required to do this but they generally try to work with service members to keep them in their homes. You will still owe this amount but will not have to repay it until after you complete active duty service.

Additionally, most lenders have other programs to assist borrowers who cannot make their mortgage payments. If you or your spouse finds yourself in this position at any time before or after active duty service, contact your lender immediately and ask about loss mitigation options. If you have an FHA insured loan and are having difficulty making mortgage payments, you may also be eligible for special forbearance and other loss mitigation options.

Am I protected against foreclosure?
Mortgage lenders may not foreclose (seize property for failure to pay a mortgage debt) while you are on active duty or within 90 days after military service without court approval. In court, the lender would be required to show that your ability to repay the debt was not affected by your military service.

What information do I need to provide to my lender?
When you or your representative contacts your mortgage lender, you should provide the following information:

• Notice that you have been called to active duty
• A copy of the orders from the military notifying you of your activation
• Your FHA case number
• Evidence that the debt precedes your activation date