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Military
Financial Relief for Active
Military Personnel
by Nemal Perera
It is a known fact that most military service men and women who are called
to active duty go through many financial hardships. As a result of the set
backs, many military personnel fall behind on their rent/mortgage payments,
default on their credit card payments and auto loans and may even have to file
for bankruptcy. Many of our military personnel are not aware of some of the
important protections available to them under the provisions of the Soldiers and
Sailors Civil Relief Act (SSCRA).
(PRWEB) January 24, 2005 -- It is a known fact that most military service men
and women who are called to active duty go through many hardships. Leaving loved
ones for indefinite periods of time can put a tremendous amount of strain on
their family lives, especially if they are the sole breadwinners of the family.
Many reservists who get called upon would have to temporarily forfeit any extra
means of income such as from a second job.
The sudden loss of income can adversely affect the overall financial health of
the military personnel and their families. As a result of the set backs, many
fall behind on their rent/mortgage payments, default on their credit card
payments and auto loans and may even have to file for bankruptcy.
Many of our military personnel are not aware of some of the important
protections available to them under the provisions of the Soldiers and Sailors
Civil Relief Act (SSCRA). The United States Congress enacted this Act in 1940 to
safeguard our military personnel and their families from financial turmoil while
serving their country. Under this Act, mortgage lenders can charge no more than
6 percent interest on mortgage loans to active duty military personnel. Some of
the other protections under this Act include,
· Termination of Leases: Under certain conditions, military personnel in
active duty may be able to terminate leases without repercussions.
· Mortgage Relief: Active military personnel and their dependents who are
unable to meet current mortgage obligations are allowed temporary payment relief
under this Act. The mortgage relief is evaluated on a case-to-case basis and it
only applies under certain conditions.
· Protection from Eviction: Under SSCRA, landlords are required to provide a
sufficient time period (usually 3 months) for any active military personnel on
duty before evicting them. Military personnel who pay more than $ 1,200 per
month on rent are not covered by this Act.
· Loan and Credit Card Interest Rates: Credit card and bank lenders are only
allowed to charge 6 percent interest on credit card debt and other loans to
active duty military personnel. The provision only applies for accounts that
have been established prior to active duty.
· Delay of all Civil Court Actions: Under certain conditions, military
personnel are allowed to postpone civil court actions such as bankruptcy and
foreclosure while in active duty.
The above protections represent only some of the provisions covered under the
SSCRA. For more detailed description of the Act, please visit the U.S. Housing
and Urban Development (HUD) web site at
www.hud.gov or call toll-free
1-800-998-9999.
CreditGUARD of America is a non-profit credit counseling organization that is
dedicated to helping military personnel and residents overcome financial
difficulties by providing financial education and full service credit counseling
services. Please visit our web site at
www.creditguard.org or
call 1-800-867-0406 for a free consultation with a certified credit counselor.
* Congressman Wayne Gilchrist Home Page – Hot topics. April 2003. Housing
Protections and Mortgage Benefits for Activated Servicemen and Servicewomen.
Retrieved on January 14, 2005 from
http://gilchrest.house.gov/Topics.asp?FormMode=Call&LinkType=Section&Section=233
** Ginnie Mae Home Page – Media Center. Retrieved on January 13, 2005 from
http://www.ginniemae.gov/media/changes.asp?Section=Media
*** Housing and Urban Development Home Page – News Release. September 2001.
Retrieved on January 13, 2005 from
http://www.hud.gov/news/release.cfm?content=pr01-083.cfm
http://www.creditguard.org
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