A Texas servicemember on active military duty receives a foreclosure notice on his homestead. He invokes the Servicemembers Civil Relief Act (SCRA). Under this federal law, what protection does the servicemember receive regarding the Texas foreclosure?
Correct Answer
C) The foreclosure must be stayed and a court order is required before proceeding, even for non-judicial foreclosures in Texas
Under the Servicemembers Civil Relief Act (SCRA), foreclosure proceedings against active-duty servicemembers require a court order, even in states like Texas that normally allow non-judicial foreclosure. The foreclosure must be stayed and the lender must obtain court approval before proceeding.
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A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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