With the U.S. congress trying to please all constituencies in this election year, especially those who took subprime mortgages and can't afford the monthly payments, where is congressional help for military families to save their homes from foreclosure?
A disturbing article on Bloomberg states, "In the midst of the worst surge in mortgage defaults in seven decades, foreclosures in U.S. towns where soldiers live are increasing at a pace almost four times the national average, according to data compiled by research firm RealtyTrac Inc. in Irvine, California."
With the stress of potential foreclosure on their minds, don't you think that this may impact their ability to fight in Iraq?
The article continues, "The Servicemembers' Civil Relief Act protects soldiers and sailors from losing homes for nonpayment of mortgages only while on active duty and for 90 days after they return home."
Ninety days?
For anyone with a family, 90 days is just not enough time to come up with a Plan B. While there is some talk of extending the relief to a full year, I haven't seen any groundswell demanding this extended relief. Why not? We have some presidential candidates promising to help bail out everyone in danger of losing their homes, yet no mention of helping out our servicemen and women. This shouldn't even be a political issue. We often grant preferential status to members of our armed forces, and deservedly so. Why should this be different?
I am not a big believer in any type of government bailout of customers who took mortgages that they can't repay. But if there is to be a bailout, shouldn't members of our Armed Forces, be first in line? After all, our military fights on the front lines in order to protect our homes. Shouldn't they be entitled to keep theirs?
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/28/08.
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Reader Comments (Page 1 of 1)
5-28-2008 @ 6:59PM
Denise said...
Yes, I agree that Congress should be looking out for our servicemembers first. You have missed 1 large part of the SSCRA, the relief from foreclosure only applies to property purchased prior to the servicemembers entry to active duty. So, for any servicemember who purchased property in the subprime market at their current duty station, this relief most likely does not apply. So, maybe Congress should also address that problem.