A well-deserved relief plan devised back in the days of World War II is still assisting
military servicemen and women and their families today in bearing the burden of
keeping up with mortgage payments while during deployment.
Called the 1940 Soldiers' and Sailors' Civil Relief Act, and
revamped several years ago with the Service members Civil Relief Act of 2003,
the program allows for military personnel who took on a mortgage prior to going
into active duty to request that their mortgage interest rates be capped at 6%
until their active service is completed.
The federal program also protects military families from
foreclosure caused by mortgage payment default while the eligible family member
is on tour, and for up to three moments following their return.
This means that troops in the Middle East won't have to be
distracted from their duties with worries of the interest rates on their
adjustable rate mortgages resetting and other fallouts of the current economic
climate. Reservists and National Guardsmen and women are also eligible for said
relief.
This provision is not automatic - it must be requested by
the eligible personnel. And it includes not just mortgage obligations predating
active service but consumer debt (like credit cards) as well.
Federal government officials are also suggesting that
lenders give eligible military personnel forbearance on all payments of
principal due during and throughout active duty.