Short answer: if you took out a mortgage before you entered military service and you still owe on it, a sale, foreclosure or seizure of the property for a breach of that mortgage is not valid if made during your service or within one year after it, unless a court ordered it first or you signed a valid written waiver. A court can also pause a case or adjust the loan when service materially affects your ability to pay. This page covers federal law only; other rules may apply where you live. It is general information, not legal or financial advice.
Which loans are covered
The protection applies to an obligation on real or personal property you own that began before your period of military service, that you still owe, and that is secured by a mortgage, trust deed or similar security (50 U.S.C. 3953(a), LII, read October 30, 2026). A period of military service starts when you enter military service and ends when you are released or die while in service (50 U.S.C. 3911(3), LII). Military service means active duty for members of the armed forces, certain National Guard service under federal orders for more than 30 consecutive days, and active service as a commissioned officer of the Public Health Service or the National Oceanic and Atmospheric Administration (3911(2)). The CFPB summarizes who is covered on its SCRA coverage page (last reviewed July 27, 2023; this page may be out of date).
The rules
| Rule | What the law says | Section |
|---|---|---|
| No sale, foreclosure or seizure | Not valid if made during service or within one year after, unless under a court order granted before it (with a return of it made to and accepted by the court) or under a valid written waiver | 3953(c) |
| Stay or adjustment | In a case filed during service or within one year after, the court may act on its own, and must when you apply and service materially affects your ability to pay, to pause the case as justice and equity require or adjust the obligation | 3953(b) |
| Penalty | Knowingly making or attempting a prohibited sale, foreclosure or seizure is a misdemeanor: a fine under title 18, up to one year in prison, or both | 3953(d) |
| Interest cap | A mortgage taken out before service may not bear interest above 6 percent a year during service and one year after, once you give the creditor written notice and a copy of your orders no later than 180 days after release | 50 U.S.C. 3937(a)-(b) |
The one-year period after service is now permanent: a 2018 law repealed an earlier sunset that would have taken it back to 90 days (statutory notes to 3953 on LII). For the interest cap, see 50 U.S.C. 3937 and the SCRA loan interest cap.
This example is only for the math, with an example date, for a mortgage taken out before service.
| Item | Example date |
|---|---|
| Release from military service | June 15, 2027 |
| End of the one-year period after service | June 15, 2028 |
Waivers must be in writing
You may give up SCRA rights, but a waiver that allows foreclosure, sale or a change to a mortgage-secured obligation is effective only if it is in writing, is a separate document from the loan, and is made under a written agreement signed during or after your period of military service (50 U.S.C. 3918(a)-(b), LII). Read any such document closely and ask a lawyer before you sign.
The notice of your SCRA rights
When an eligible homeowner fails to pay an amount when due on a home loan, the creditor must, within 45 days, give notice of homeownership counseling, including a plain-English statement written by HUD explaining the mortgage and foreclosure rights of servicemembers and their dependents under the SCRA, with the toll-free military support number (12 U.S.C. 1701x(c)(5)(A)-(B), LII). The law sets which homeowners are eligible and excuses the notice if the overdue amount is paid first. This example is only for the math, counting the first day as day 1.
| Item | Example date |
|---|---|
| Payment missed | September 2, 2027 |
| End of the 45-day period | October 16, 2027 |
What the CFPB says
The CFPB says that with a mortgage taken out before active duty, you generally cannot be foreclosed on without a valid court order while on active duty and for 12 more months, whether or not you told your lender or servicer about your military status, and that it suggests your nearest military legal assistance office for questions (CFPB, last reviewed May 31, 2023, read October 30, 2026; this page may be out of date).
If you are behind on payments
Federal servicing rules on help with missed payments apply too; see options when you are behind on mortgage payments and the CFPB housing counselor search. For limits on the cost of other consumer credit while on active duty, see the Military Lending Act 36 percent cap. For your own case, ask a lawyer or a military legal assistance office; you can also look for legal aid through the Legal Services Corporation. You can submit a complaint at consumerfinance.gov/complaint.
Questions to ask the servicer
- Do your records show my military service and its dates?
- Was this mortgage taken out before my service began?
- Have you sent me the notice of SCRA rights?
- What do you need from me to apply the 6 percent interest cap?
- Is any foreclosure step scheduled, and has a court order been granted?
Checklist
- Keep copies of your orders and release papers.
- Note the date your service ends and the date one year later.
- Send written notice and your orders to get the interest cap, no later than 180 days after release.
- Do not sign a waiver before reading it and getting legal advice.
- Talk to a lawyer or military legal assistance office about any foreclosure notice.
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Sources
- Cornell LII: 50 U.S. Code 3953, Mortgages and trust deeds (SCRA)
- Cornell LII: 50 U.S. Code 3911, Definitions (SCRA)
- 50 U.S.C. 3937: Maximum rate of interest on debts incurred before military service (SCRA)
- Cornell LII: 50 U.S. Code 3918, Waiver of rights pursuant to written agreement (SCRA)
- Cornell LII: 12 U.S. Code 1701x, Assistance with respect to housing for low- and moderate-income families
- CFPB: As a servicemember, am I protected against foreclosure? (last reviewed May 31, 2023)
- CFPB: When am I covered by the Servicemembers Civil Relief Act (SCRA)? (last reviewed July 27, 2023)
- CFPB: Find a housing counselor
- CFPB: Submit a complaint
- Legal Services Corporation: Find legal aid
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.