What are the foreclosure options for servicemembers?

In Washington, servicemembers have several foreclosure options available to them. First, they may be eligible for a loan modification or refinance. Loan modifications and refinances give servicemembers the opportunity to lower their monthly payments to an amount they can manage. They can also negotiate with the mortgage lender to reduce the interest rate or even get a forbearance agreement, which allows them to delay payments for a set period of time. Servicemembers may also be able to take advantage of the Military Relief Act, which provides certain protections to servicemembers affected by a deployment or involuntary move. Under the act, servicemembers can request that any foreclosure action against them be stayed or suspended for up to one year. During this time, they can focus on financial recovery without the fear of losing their home. Finally, servicemembers may be able to work with their lender to obtain a short sale or deed in lieu of foreclosure. In a short sale, the lender agrees to accept less than what is owed on the mortgage. A deed in lieu of foreclosure is when a servicemember voluntarily transfers ownership of the property to the lender in order to avoid foreclosure proceedings. Ultimately, the foreclosure options for servicemembers in Washington will depend on the individual circumstances of the servicemember and their lender. It is important for servicemembers to discuss their options with their lender in order to find a resolution that works best for both parties.

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