By Carl Surran
Military Families On Front Lines Of Foreclosure Crisis
Spring 2009
The
The Housing and Economic Recovery Act bans lenders from foreclosing on military personnel for nine months after their return from overseas, up from three months, and ensures that interest rates on their loans remain stable for a year. This temporary protection expires Dec. 31, 2010. The law also excludes military housing allowances from counting as income when military members try to qualify for low-income housing.
A change to the Joint Federal Travel Regulations authorizes the military to pay to move servicemembers and their families when a landlord defaults and the military tenant is forced to relocate locally to new housing. The change does not apply to military homeowners who default on their loans.
The new National Guard and Reservist Debt Relief Act exempts Guard and Reserve members from “means testing” in bankruptcy cases while on active duty, providing the same protections available to active duty forces deployed overseas.
Another bill to prevent certain injured veterans from losing their homes while they wait for their disability money also was signed into law. The protection is good for one year.
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