The Servicemembers Civil Relief Act (SCRA) offers active-duty servicemembers a plethora of legal protections, particularly in matters of finance and housing. But for the veterans—the ones who have already done their time within the military unit—these safeguards are not there to that level.
Knowing the Servicemembers Civil Relief Act (SCRA)
Enacted to relieve financial and legal hardships on active-duty military personnel, the SCRA provides protection against foreclosure, eviction, interest rates, and default judgments. According to the US Department of Justice, the SCRA shields servicemembers during their transition into active duty under these protections.
Eviction protection under the SCRA
The SCRA provides some protection against eviction for active-duty servicemembers:
- Eviction prevention: Landlords must have a court order to evict a servicemember or dependents of a servicemember from a leased home if the rent is not higher than a specified maximum amount. In 2023, the amount is $9,106.46.
- Court-ordered stays: In situations where military service makes it difficult to pay rent, courts can stay eviction cases for three months or longer.
Foreclosure protections under the SCRA
Servicemembers are also protected by the SCRA from foreclosure:
- Foreclosure prevention: Lenders cannot foreclose on a servicemember’s home without a court order on active duty and, in some cases, after leaving the service.
- Interest rate cap: Home loans borrowed before the time of acquisition while going into the armed services are limited to 6% interest while on active duty.
Applicability of SCRA protections to veterans
While SCRA is primarily concerned with active-duty members, there are a few protections that cover even after active duty:
- Foreclosure protection extension: Under pre-military service mortgages, SCRA offers foreclosure protection for a year following active duty. This compels veterans to be shielded from foreclosure by the court order for a year.
- Interest rate cap extension: Extension to a one-year period after being discharged from active duty of the 6% interest rate limitation on pre-service home mortgages.
It has to be acknowledged, though, that such covers are transitory and solely relate to obligations amassed before enrolling in military duties. Once elapsed periods for extension, veterans gain no further benefits of SCRA protection for their foreclosure and eviction.
State-level protections for veterans
Other states have enacted provisions that provide additional protections to veterans if they are to foreclose and be evicted. California’s Military and Veteran Consumer Protection Act of 2022, for instance, provides additional rights in some respects on lease cancellations. Veterans would have to check their relevant state laws or consult a lawyer to understand what additional protection they can access.
Alternative resources and protections for veterans
Although SCRA protections will not always endure beyond serving, veterans also qualify for other resources:
- Department of Veterans Affairs (VA) programs: The VA has a number of programs available to help veterans experiencing housing problems, including forbearance on loans, payment plans, and loan modification.
- Legal assistance: Legal assistance services that deal with veterans’ affairs can be contacted by veterans so they may investigate options and rights against foreclosure or eviction.
