Real Estate Woes Continue in Many Military Communities
May 29 2008
A recent article on Bloomberg News highlights the plight of many military homeowners…
Foreclosures in Military Towns Surges to Four Times the National Rate by Kathleen M. Howley (Bloomberg News)
Many military members, lured by the easy credit terms offered a few years ago, are now being hit by the double-whammy of rising mortgage payments as the adjustable-rate mortgages (ARMs) that many of the use start to reset and rapidly falling housing prices. The biggest mistake many of them are making? Waiting too long before seeking assistance.
If a servicemember starts getting behind on their bills, they should seek help immediately. Unit commanders at all levels should keep a sharp eye out for potential money troubles, such as a sudden drop in performance, arguments with co-workers, increasing sick calls and other signs of financial stress. Immediate intervention and referral to services that can help is imperative.
Sources of assistance for military members in trouble with their homes include:
- National Foreclosure Hotline at (888) 995-467
- Military OneSource at (800) 342-9647
- USA Cares
In addition, activated National Guard or Reservists should immediately contact their lender and invoke their rights under the Servicemembers Civil Relief Act (SCRA), potentially lowering their mortgage rate to 6 percent during deployment. Visit HUD Q&A for Reservists, Guardsman and Other Military Personnel for more information.
The bottom line? Many military families are in trouble with their home loans and this financial stress hurts readiness and unit morale, so leaders need to keep a sharp eye out for potential problems and intervene early!
