Proposed Legislation Designed To Protect Military Borrowers

MortgageOrb.com, Tuesday 08 March 2011 - 11:17:21

In response to recent reports involving military service members being treated improperly by mortgage lenders and servicers, Sen. Sheldon Whitehouse, D-R.I., has introduced new legislation to enhance foreclosure protections for military borrows.

According to Whitehouse, the Protecting Servicemembers from Mortgage Abuses Act of 2011 would expand on the Servicemembers Civil Relief Act of 2003 by doubling the maximum criminal penalties for violations of its foreclosure and eviction protections. It would also double civil penalties in cases where the attorney general has commenced a civil action. In addition, the bill will give service members an extended period of foreclosure-protection coverage after military service has ended, from the current nine months to a new 24-month period.

"Our troops serving abroad face countless threats every day, but the threat of foreclosure should not be among them," says Whitehouse. "This legislation will help ensure that service members and their families, who have sacrificed so much, will not be forced to endure the pain of foreclosure while they defend our country."

The legislation is co-sponsored by Sens. Kay Hagan, D-N.C., Jack Reed, D-R.I., Jeff Merkley, D-Ore., Bernie Sanders, I-Vt., and Jon Tester, D-Mont.



SOURCE: Office of Sen. Sheldon Whitehouse
http://www.mortgageorb.com/print.php?plugin:content.7996

VA AUTHORIZES RELOCATION HELP FOR SHORT SALES AND DEEDS-IN-LIEU

The Department of Veteran Affairs (VA) has instructed mortgage servicers to advance $1,500 to borrowers completing short sales or deeds-in-lieu (DIL) of foreclosure on VA loans in order to assist with relocation costs. The federal agency says it has a longstanding policy of encouraging servicers to work with veteran borrowers to help them retain their homes or, when that is not feasible, to mitigate losses by pursuing alternatives to foreclosure.

http://www.dsnews.com/articles/va-paying-relocation-costs-for-short-sales-and-deeds-in-lieu-2011-01-17