Real Estate

Increased Foreclosure Protection for Service Members

Public Act 138 (Act) signed by Governor Jennifer Granholm on May 21, 2008 aims to provide additional foreclosure protection for returning military service members. The Act issues a “stay on mortgage foreclosure proceedings for six months after the end of the individual’s military service.” The stay is intended to give service members additional time to remedy mortgage deficiencies, seek loan modifications, and otherwise work with lenders to prevent foreclosure. The Act is effective immediately. Mortgagees who sell or foreclose during the stay period would be subject to a $2,000 civil fine.

Congress is also addressing this issue at the national level. Currently, federal law requires a three month stay on foreclosure proceedings under the Service Member Civil Relief Act (SCRA). A bill sponsored by Senator John Kerry would extend the stay to nine months after active duty service members return home.

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