Financial sacrifices are among the things American military service members and their families endure while serving our country and protecting our freedoms. Because active-duty military families can be reassigned or deployed numerous times, there are laws in place to protect them from home foreclosure or car repossession.

The Servicemembers Civil Relief Act is a federal law, enforced by the Department of Justice, that protects the credit and property of active-duty servicemembers by limiting the circumstances under which a creditor can repossess property, including home foreclosure.

What Is a Home Foreclosure?

When purchasing a home, most homebuyers must put a down payment and take out a mortgage, financing the balance which they will pay over time. The money borrowed is known as the principal and, on top of this, there’s an agreed-upon interest rate. Home foreclosure happens when the homeowner doesn’t, or can’t, make their mortgage payments. If the mortgagor is unable to continue to pay down their home loan, the lender can take possession of the house and evict the homeowner and their family. A home foreclosure can have dire consequences for the homeowner, especially on their credit score, which can be found anytime a lender or credit card company pulls someone’s credit report.

What Is the Home Foreclosure Process?

A mortgage company or bank cannot evict a homeowner and reclaim ownership of the house after a single missed mortgage payment. There is a process lenders must go through to execute a home foreclosure. When a homeowner has missed three loan payments, the lender can initiate the pre-foreclosure process, beginning with a notice of default that then becomes a matter of public record.

A home can be in pre-foreclosure for up to several months, during which the time the homeowner has some options: they can attempt to catch up on payments to reverse the default, pay off the loan, or sell the home before it is foreclosed. If you are selling your home to avoid foreclosure, this is called a short sale.

Foreclosure laws vary by state. In 22 states a home foreclosure requires a court’s involvement, while the remaining 28 states have a non-judicial process, meaning that the lender can take possession of the property without involving a judge unless the homeowner files suit against the lender. Once the creditor has established their right to foreclose, they will seize the home and can sell it at auction to recoup their money.

Is Home Foreclosure Legal if You Are on Active Duty?

It is legal for a lender to pursue a home foreclosure if the loan is in default, even if the homeowner is an active military service member, but only if the lender obtains a court order or if the servicemember allows the mortgage holder to foreclose. Otherwise, according to the Military Families Learning Network, a lender cannot foreclose on a military family’s home during active duty or for a period of 12 months after their service ends. In some cases, the Servicemembers Civil Relief Act can protect servicemembers from a default judgment.

How to Respond to a Home Foreclosure as a Military Member

If you are an American service member who is facing a home foreclosure, you have options thanks to the Servicemembers Civil Relief Act. As Military.com explains, if you are seeking foreclosure protection under the Servicemembers Civil Relief Act, you must first demonstrate that your financial setback is a direct result of your military service. You must invoke your right to protection within 180 days after your service ends. Protection under the Servicemembers Civil Relief Act doesn’t provide mortgage loan forgiveness, but it will grant you time to reorganize your finances and begin to climb out of default.

How to Find a Home Foreclosure Attorney

A home foreclosure attorney can help members of the military who have been subjected to a home foreclosure without a court order while on active duty. In cases like these, active duty service members may be entitled to seek compensation by filing a lawsuit against the mortgage holder. If you are on active duty you can contact your base’s legal office, a military defense counsel, or a civilian mortgage foreclosure attorney.

Facing home foreclosure is stressful and navigating the law can be challenging. Top Class Actions can connect you with an attorney experienced in helping servicemembers take advantage of the benefits they are entitled to under the Servicemembers Civil Relief Act.