What are the foreclosure options for servicemembers?

Servicemembers in California who are facing foreclosure have several options available to them. The Servicemembers Civil Relief Act (SCRA) can help servicemembers facing financial hardship due to a deployment or long-term military service. The SCRA allows servicemembers to temporarily suspend their mortgage payments or reduce interest rates. Servicemembers must be able to demonstrate a financial hardship related to their military service. In California, servicemembers may also have the option of pursuing a short sale or deed-in-lieu of foreclosure. A short sale is when the lender agrees to accept less than the full amount owed on the debt in exchange for the property. A deed-in-lieu of foreclosure is when the homeowner voluntarily transfers ownership of the property back to the lender in exchange for debt relief. In California, if a servicemember does not qualify for a loan modification or cannot keep up with the reduced payments, they may be eligible for foreclosure mediation. The California Department of Veterans Affairs, working with the California Judicial Council, has established a Foreclosure Mediation Program that helps servicemembers seek alternatives to foreclosure. Finally, the California Military Family Relief Fund (CMFRF) can help servicemembers in California who have been financially impacted by military service. The CMFRF provides grants to qualifying servicemembers to cover costs such as rent, mortgage payments, utility bills, and food. Overall, servicemembers in California have several resources available to help them avoid foreclosure. They can seek loan modification, pursue a short sale or deed-in-lieu of foreclosure, take advantage of foreclosure mediation, or apply for assistance from the CMFRF.

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What are the foreclosure options for servicemembers?

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