Military homeowners often face a level of uncertainty when purchasing homes that conventional buyers don't often encounter. To provide further protection, one government agency recently announced new guidance to make it easier for delinquent members of the armed forces to relocate.
Since men and women in uniform are routinely required to pick up and move, if they own property, it can be difficult to sell their homes in today's market. To eliminate this burden, the Consumer Financial Protection Bureau recently laid out new protocol for mortgage servicers.
"Those who serve our country deserve to be given the best service by their mortgage servicer," said CFPB director Richard Cordray. "Permanent Change of Station orders can complicate a servicemember’s homeownership decisions in ways that civilians may not experience."
Under the guidance, mortgage servicers must now provide information to military borrowers on all of their assistance options and aid they may qualify for. In the past, some servicers even went as far as advising them to skip mortgage payments and intentionally become delinquent on their home loan payments, just so they could qualify for certain assistance. These guidelines aim to eliminate this practice.
Additionally, rather than face foreclosure as a result of a PCS, it will be much easier for members of the armed forces to qualify for a short sale.