I have a mortgage with my bank and am entering active duty. I know the SCRA puts a 6% interest rate cap on mortgage loans and other debts, but I pay less than 6% on my mortgage already. Can I still get some kind of relief?
Untitled
No, sorry. The SCRA just places the 6% interest rate cap on loans or debts carrying rates above the cap. If your rate is at that 6% rate, you may still want to invoke your rights as "interest" under the SCRA includes other fees. So if you invoke your rights to a 6% rate and are already at 6%, you won't have to worry about late fees being added to your loan. You do still have to make your payments and they should be made on time to preserve your credit rating.
As a mortgagee you may have other rights under Titles II and III, such as a stay of proceedings right and protections against foreclosures. Plus, you may still have rights under other sections of the SCRA and protections for other debts.
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No, sorry. The SCRA just places the 6% interest rate cap on loans or debts carrying rates above the cap. If your rate is at that 6% rate, you may still want to invoke your rights as "interest" under the SCRA includes other fees. So if you invoke your rights to a 6% rate and are already at 6%, you won't have to worry about late fees being added to your loan. You do still have to make your payments and they should be made on time to preserve your credit rating.
