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Servicemen relief act

Discussion in 'The Okie Corral' started by gatorhugger, Mar 25, 2010.

  1. gatorhugger

    gatorhugger

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    I was talking to a man today, a commander in the Navy, owns 6 investment homes. They have all lost value of course, so he is dumping them, selling them for nothing, far less than even their present market worth.
    Normally he would have to come up with any difference between sales price and his mortgages.
    He was laughing away, said the Servicemen relief act will have the taxpayors pay the bank for any money he lost.

    What a scam!!! Buy as many investment homes as you want, if they increase in value you clean up. If the market collapses, you have the taxpayor buy them off of you. Because you are military.

    Unbelievable. I get the concept of helping on one single home, but 6 INVESTMENT HOMES!!!
    He was quite happy with himself.
     
  2. napp32

    napp32

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    The banks may eat the losses; but it won't be due to the provisions of the Servicemen's Relief Act. The language of the act is pretty specific in stating that his hardship must be a direct result of his military obligations. I doubt that loss of investment due to a failing economy would meet those requirements.

    There is also language in the act which states that protection of properties under the act normally applies only to properties that were acquired prior to entry onto active duty. He may or may not have owned all the houses prior to active duty.
     

  3. Whiskey Six

    Whiskey Six Marine 0369 Platinum Member

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    The Serviceman's Relief Act is basically protection from foreclosure, eviction, repossession or other court proceedings due to financial hardship due to military deployment or duties. It prevents banks or landlords from initiating legal action until the service member returns. I don't believe it provides protection for multiple investment properties.

    http://usmilitary.about.com/cs/sscra/a/scra2.htm
     
  4. JoeCitizen

    JoeCitizen

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    His laughing will turn to vomiting once the cold wet hand or reality slaps him across the face.
     
  5. Swiper

    Swiper

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    He will be disappointed because he is obviously cluesless about the Service Member Civil Relief Act. It will do nothing to help him in this situation.

    <- Used to work at a Military Legal Assistance Office where questions about SCRA was a daily occurence.
     
    Last edited: Mar 26, 2010
  6. Surt

    Surt Jötunn-Kin

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    We just sold our house on a short-sale when the Army moved us to Alaska. The it happened with us is the VA ate the losses, and we took a credit hit in relation to the short sale amount. We're only allowed a VA loan of $190,000 now until we pay back the amount of the short-sale, but there is no legal requirement for us to ever pay it back.
    If he's actually doing what he's saying, he's going to have a credit score of 1.
     
  7. gatorhugger

    gatorhugger

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    That is exactly what he is planning- to short sale them. The government eats the losses. Actually, I think he got the name wrong, it's the Homeowner's assistance program through the department of defense.
    It may kill his credit, but he is going to do it.
    This is the second military guy selling investments this way. So it works for them. They are dumping these investment homes.
     
  8. Whiskey Six

    Whiskey Six Marine 0369 Platinum Member

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    Even with HAP he will only be covered for his primary residence. Not investment property.
    http://hap.usace.army.mil/FAQs.html#conventional

    # Owner/Occupant. The applicant must have owned and occupied the residence on the date of announcement; and

    * Suffered at least a 5% loss of value in community and 5% home value loss.

    This guy sounds like a real Officer and Gentleman.:upeyes: He is in for a few surprises.:rofl:
     
  9. JoeCitizen

    JoeCitizen

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    *deleted*
     
    Last edited: Mar 26, 2010
  10. Carolina Drifter

    Carolina Drifter CLM

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    If it smells like **** it usually is ****.