Federal law assists troops' dealings with creditors Published March 29, 2005 By Gerry J. Gilmore American Forces Press Service WASHINGTON (AFPN) -- Federal law prohibits mortgage lenders from immediately foreclosing on homes owned by servicemembers deployed overseas on military duty, a senior legal officer said here.All servicemembers, including those deployed, are protected under the Servicemembers Civil Relief Act, signed by President Bush on Dec. 19, 2003, said Army Col. Christopher Garcia, director of legal policy for the undersecretary of defense for personnel and readiness.“The (Act) includes a provision that protects against default judgment,” Colonel Garcia said. “In any civil action, such as a lawsuit or a foreclosure, in which the defendant does not make an appearance, the court must require the plaintiff bringing the suit to file an affidavit saying whether or not the other party in the lawsuit is a servicemember.”If the party being sued for foreclosure or some other debt action is a servicemember, he said, the Act “requires the judge to do certain things to protect the servicemember’s rights.”For example, the courts are required to stay the court proceedings for a minimum of 90 days until the servicemember can be present to assert a defense, he said Most often, such court cases are delayed until the servicemember has completed his or her overseas deployment.Colonel Garcia said he had no specific information regarding recent news reports saying some deployed servicemembers have had their homes foreclosed on or had other assets seized in contradiction to the law.Business-community compliance with the Act “generally has been very good,” Colonel Garcia said. Yet, he acknowledged, there have been “isolated cases of noncompliance.” This usually occurs “when a lender, or landlord, or other person dealing with a servicemember is unaware of the law,” he said.After lenders and other creditors become aware of the law, they usually comply with it, Colonel Garcia said.Activated Reserve and Guard servicemembers and those on active duty and their family members can contact their local military legal assistance officers to assist them in enforcing their rights, Colonel Garcia said.A legal assistance attorney can “draft a letter or make a phone call,” he said. If the creditor refuses to comply with the Act, either the servicemember can sue privately, or the Department of Justice can bring an enforcement action in federal court.The Act is an update to the Soldiers and Sailors Civil Relief Act of 1940, which was established to provide protections to deployed troops who have difficulty meeting their personal financial and legal obligations because of to their military service.