The Servicemembers Civil Relief Act was introduced in 2003 as a way to protect active military personnel from certain civil actions—allowing them to focus on their military duties without worrying about financial obligations at home.
Building on the already-established Soldiers and Sailors Civil Relief Act, SCRA includes foreclosure and eviction protections requiring that mortgage servicers take additional measures to identify borrowers who are active military personnel. In the meantime, servicers are prohibited from taking action to evict anyone actively serving in the military.
To comply with SCRA, servicers rely on field service companies to provide additional assistance through borrower outreach.
As the front line for mortgage servicers, field service companies perform monthly property inspections once a servicer determines a loan is delinquent, or 45 days past due, and prior to foreclosure sale. They are done to verify occupancy and determine the condition of the property for the mortgage servicer.
To identify military personnel and comply with SCRA guidelines, Safeguard has begun doing additional inspections on first-time vacant properties. Safeguard’s inspectors must complete five inspections over a 10-day period in an attempt to make contact with the borrower and to determine if that borrower is an active service member.
If contact is established, Safeguard’s inspectors are instructed to have the borrower fill out forms to verify their military status. If no contact is made, the contractor is asked to reach out to family members and neighbors. Inspectors are required to leave door hangers in addition to other documents as a way to make contact and reach out to borrowers.
Often service members are not aware of their rights under SCRA. To provide outreach, field service companies leave documents at the property to inform them of their rights as far as foreclosures and evictions are concerned. Additionally, the inspector can give them information on contacting their servicer to possibly modify their loan or make other arrangements.
In dealing with SCRA compliance, field service companies can act as a bridge between servicers and military members. They are the direct line of contact in ensuring active duty military members’ rights are protected.
