HUD Announces Revised Disclosure Notice on Military Homeownership Rights
July 18, 2011
July 19, 2011
The U.S. Department of Housing and Urban Development recently announced a revised Notice of Disclosure form that emphasizes the rights of the active duty military and their dependents who are protected under the Servicemembers Civil Relief Act.
The Act mandates that military personnel on active duty in wartime are entitled to mortgage relief, including a lower interest rate (not more than six percent) on their mortgages and foreclosure protection. It states that a foreclosure proceeding against certain military personnel, who are recalled to active duty, is not valid unless the creditor has obtained a court order approving it and further states that the courts may stop the proceedings for a time or adjust the debt.
A written request and a copy of military orders must be sent to a lender in order for a servicemember to get interest rate relief and foreclosure protection under the Act. In its revised form, however, the Notice of Disclosure emphasizes that there is no requirement thereafter for servicemembers to alert their lenders of their military status in connection with a foreclosure. It is each lender’s responsibility to make that determination and to send a copy of the Notice of Disclosure to homeowners, who are in default on a mortgage.
The Notice advises servicemembers seeking relief to call 1 (800) 342-9647 or go online for additional information and guidance. It also provides guidance on obtaining military legal assistance.
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.
Posted in Compliance.