WASHINGTON, D.C. – May 23, 2014 – (RealEstateRama) — As the nation prepares to honor veterans and servicemembers during this Memorial Day weekend, U.S. Senator Sheldon Whitehouse has introduced legislation to help keep military families in their homes by protecting them against foreclosure following active duty. The Foreclosure Relief and Extension for Servicemembers Act of 2014 (S. 2404) would ensure that troops who serve active duty are protected against losing their home for one year following the completion of their service in the field.
“After fighting for our country overseas, our troops shouldn’t have to fight to keep a roof over their heads when they return home,” said Whitehouse. “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. This legislation will guarantee a full year of foreclosure protection for those troops and their families, and I hope all of my colleagues will support it.”
In 2008, Congress first extended the period of foreclosure protection under the Servicemembers Civil Relief Act (SCRA) from 90 days to 9 months in response to a report by the Commission on the National Guard and Reserves. The report found that “the threat of foreclosure is a stressor that need not be placed on members of the armed forces during the first months of their return to civilian life.”
In 2012, Senator Whitehouse successfully fought to extend the period of foreclosure protection even further, pushing it to one year; but that extension is set to expire on December 31, 2014. Whitehouse’s new bill would make the one year protection period permanent. If Congress fails to act, the period of foreclosure protection will revert back to just 90 days starting in 2015.