Bill Would Safeguard Survivors’ Homes from Foreclosure

In 2008, Congress made provisions in an economic recovery bill which included new protection for mobilized National Guard and reserve members. It made it so their houses could not be foreclosed on for up to nine months after their release from active duty. This came at a time when foreclosures in the U.S. were on the rise.

This provision is set to expire at the end of this year. It was part of a compromise. Financial institutions had voiced concerns that some Guard or reservists would use military duty as a way to avoid their financial responsibilities.

However, last Tuesday, Rep. Frank Kratovil Jr., D-Md, introduced legislation that would protect surviving spouses of service members killed in either Afghanistan or Iraq from losing their homes through either forced sale or foreclosure for one year.

Kratovil’s staff released a statement in which they said that this was one of several ideas that they were working on based on meetings that he had had with Veterans.

Kratovil’s bill is called HR 4664 and it has been referred to the House Veterans’ Affairs Committee, which is the governing body overseeing the various financial and legal protection in the Servicemembers’ Civil Relief Act.  They are also working on a package of improvements to the existing laws that may be passed later in the year.

In addition, there is separate legislation pending in the House of Representatives that will extend the foreclosure protection for Guard members and reservists for an additional five years.

The Mortgage Foreclosure Moratorium for Surviving Spouses (Kratovil’s bill) would grant this same foreclosure protection to survivors of service members killed in either Afghanistan or in Iraq. It would only remain in place for one year following the death, and it would only apply to survivors of service members killed or in deaths relating directly to Operations Iraqi Freedom or Enduring Freedom.

Source: Air Force Times

If you are a Veteran in need of assistance, please contact the Lifeline for Vets™ at 888-777-4443.  To support the NVF’s programs and services for Veterans in need, visit www.help-Veterans.org.