One-Year Foreclosure Protection Under the SCRA Made Permanent

The one-year period during which a servicemember is protected from foreclosure after leaving military service is now permanent.

The federal Servicemembers Civil Relief Act (SCRA) sets out a number of protections to help servicemembers during and after their time in the military. For instance, if a servicemember takes out a mortgage loan before military service, the SCRA prohibits a lender from foreclosing while the servicemember is on active duty or within one year afterward—unless a court orders the foreclosure or the servicemember signs a waiver. (To learn more, see Foreclosure Protections & the Military: When a Servicemember Gets a Mortgage Before Active Duty.)

Initially, when the SCRA went into effect in 2003, servicemembers received only 90 days of foreclosure protection after active duty service ended, instead of one year. Congress later extended the period to nine months in 2008, and then to one year in 2012. The period was set to revert to 90 days at the end of 2014, but Congress extended the one-year protection several times. The most recent extension happened on December 12, 2017, when President Trump signed the National Defense Authorization Act for Fiscal Year 2018, which kept the one-year post-service protection period in effect. Without further action, the provision allowing one year would have sunset (expired) on December 31, 2019, and the protection would have gone back to 90 days.

The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), however, which President Trump signed on May 24, 2018, eliminates the sunset date and makes the one-year period during which a servicemember is protected from foreclosure after military service permanent.

Effective date: May 24, 2018