SCRA

Did you know the Servicemember’s Civil Relief Act (SCRA) protects active duty military from repossessions and foreclosures?

SCRA Installment Contract Protection

A servicemember who, prior to entry into active duty, entered an installment contract for the purchase of real or personal property (including motor vehicle), is protected under the SCRA if the servicemember’s ability to make the payments is “materially affected” by the military service.

  • The servicemember must have paid, prior to entry onto active duty, a deposit or installment under the contract.
  • The seller is then prohibited from exercising any right or option under the contract to rescind or terminate the contract, to resume possession of the property for nonpayment of any installment due, or to breach the terms of the contract, unless authorized by the court.
  • The SSCRA protects servicemembers against foreclosures of mortgages, as long as the following facts are established:
    1. The relief is sought on an obligation secured by a mortgage, trust deed; or other security in the nature of a mortgage on either real or personal property;
    2. The obligation originated prior to entry on active duty;
    3. The property was owned by the servicemember or family member prior to entry on active duty;
    4. The property is still owned by the servicemember or family member at the time relief is sought;
    5. The ability to meet the financial obligation is materially affected by the servicemember’s active duty obligation.