SCRA: 90 DAY PERIOD EXTENDED TO ONE YEAR

The Foreclosure Relief and Extension for Servicemembers Act of 2015 was enacted on March 31, 2016. It amends the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 by extending the one-year period after a service member’s military service during which certain protections apply. Those protections include: 1) a court may stay proceedings to enforce an obligation on real or personal property owned by the service member before such military service; and 2) any sale, foreclosure, or seizure of such property shall be invalid without a court order or waiver agreement signed by the service member.
The SCRA originally provided protection for 90 days, after the conclusion of military service, from debt enforcement action or the sale, foreclosure or seizure of property. However, since 2008, the 90 day timeframe has been repeatedly extended. The most recent extension expired on December 31, 2015. On January 1, 2016, with all amendments extending the timeframe expired, the protections reverted back to the original 90 day timeframe.
On March 31, 2016 the President signed the Foreclosure Relief and Extension for Servicemembers Act of 2015 into law, re-instating the one year timeframe through December 31, 2017.
Financial institutions that changed their SCRA Notice to reflect a 90 day period of protections beginning on January 1, 2016, when the extension of the one year period had expired, should ensure their SCRA Notice now reflects the one year period of protections.
Effective January 1, 2018 the one year period is set to revert back to the original period of 90 days.
Our 2015 blog article detailing the list of amendments to the 90 day period is linked here.

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