Active-duty military members have some of the strongest foreclosure protections available under federal law. The Servicemembers Civil Relief Act (SCRA) provides a 6% interest rate cap on pre-service mortgages, the right to request a stay of foreclosure proceedings, protection from default judgments, and other safeguards designed to prevent service members from losing their homes while serving the country.
Florida is home to more than 20 major military installations and hundreds of thousands of active-duty service members, reservists, and veterans. If you are a service member facing foreclosure in Florida, understanding your SCRA rights — and the additional protections available through VA loan programs — is essential to protecting your home and your family.
What Is the SCRA 6% Interest Rate Cap?
The SCRA caps the interest rate at 6% on any mortgage obtained before the service member entered active duty. This cap applies to all types of mortgages — VA, FHA, conventional, and adjustable-rate. The interest rate reduction applies for the entire duration of active-duty service.
To request the rate reduction, you must submit a written request to your mortgage servicer along with a copy of your military orders. The servicer must reduce the rate retroactive to the first day of active duty. Any excess interest already paid must be credited to your account, and the servicer cannot charge any fees for processing the rate reduction.
The practical impact of this rate reduction can be significant. On a $300,000 mortgage at 7.5%, reducing the rate to 6% saves approximately $290 per month. Over the course of a deployment or extended active-duty period, this savings can prevent a financial hardship from becoming a default.
The rate cap does not apply to mortgages obtained during military service — only to pre-service obligations. If you took out the mortgage before your current period of active duty, the cap applies. If you took it out while already on active duty, it does not.
How Does the Stay of Foreclosure Proceedings Work?
The SCRA gives active-duty service members the right to request a stay (pause) of foreclosure proceedings. A stay temporarily halts the legal process, giving the service member time to address the situation without the pressure of an active court case.
To request a stay, the service member (or their attorney) must file a motion with the court, provide a copy of military orders showing current active-duty status, include a letter or declaration stating how military service materially affects the ability to participate in the proceedings, and provide a date when the service member expects to be able to appear (if applicable).
The initial stay must be granted for at least 90 days. The service member can request additional stays if military service continues to prevent meaningful participation in the proceedings. Courts generally grant additional stays when the service member demonstrates ongoing military service obligations.
The stay protection extends for one year after the end of active-duty service. This post-service period recognizes that transitioning from military to civilian life takes time and that service members need a reasonable period to get their financial affairs in order.
What Protection Exists Against Default Judgments?
One of the most important SCRA protections prevents default judgments against active-duty service members. Before any court can enter a default judgment in a foreclosure case, it must first determine whether the defendant is in military service. If the service member has not appeared in the case, the court must appoint an attorney to represent their interests.
In the Florida foreclosure process, the lender files a complaint and the homeowner has 20 days to respond. If the homeowner does not respond, the lender can seek a default judgment. For civilian homeowners, this can fast-track the foreclosure. For active-duty service members, the SCRA intervenes and prevents this outcome.
Lenders are required to file an affidavit with the court certifying that the defendant is not on active military duty before seeking a default judgment. Filing a false affidavit is a federal crime. The court can verify military status through the Defense Manpower Data Center (DMDC) database.
If a default judgment is entered against an active-duty service member in violation of the SCRA, the judgment can be set aside. The service member has the right to reopen the case within 60 days after leaving military service.
What Happens When You PCS and Cannot Sell Your Home?
Permanent Change of Station (PCS) orders create unique foreclosure risks for military families. When you are ordered to a new duty station and cannot sell your home — either because the market has declined or because the home is underwater — you may be forced to rent the property or leave it vacant. If rental income does not cover the mortgage or the home sits empty, default can follow.
Barrett Henry, a REALTOR with 23+ years of real estate experience and Broker Associate at REMAX Collective, works with military families in Florida who need to sell quickly due to PCS orders. Options for PCS-related financial hardship include:
- VA Specially Adapted Housing grants for eligible service members
- VA loan assumption — allowing a qualified buyer to take over your VA loan, which can make the home more attractive to buyers and facilitate a faster sale
- Short sale with VA approval — if the home is underwater, the VA can authorize a short sale through its compromise sale process
- Deed in lieu of foreclosure — voluntarily transferring the property to the VA or the lender to avoid foreclosure
- SCRA rate reduction — lowering your rate to 6% to make payments more manageable while renting the property
What VA Loan Forbearance Options Are Available?
VA loans offer specific forbearance options that are more generous than conventional loan programs. The VA requires its loan servicers to make every effort to help borrowers avoid foreclosure, and VA loan servicers have a lower foreclosure rate than any other loan type as a result.
VA forbearance options include:
- Repayment plan. The servicer spreads the delinquent amount over several months of increased payments in addition to the regular monthly payment.
- Special forbearance. The servicer temporarily reduces or suspends payments for a specified period, allowing the borrower to recover from a temporary hardship.
- Loan modification. The servicer permanently changes the loan terms to make the payment more affordable. VA loan modifications can include rate reductions, term extensions, and capitalization of delinquent amounts.
- VA partial claim. The VA can advance funds to bring the loan current, creating a separate junior lien that does not require immediate repayment.
- Refunding. In extreme cases, the VA can purchase the loan from the servicer and work directly with the borrower on terms.
To access VA forbearance options, contact your loan servicer and specifically request VA loss mitigation. You can also contact the VA Regional Loan Center at 877-827-3702 for assistance. VA loan technicians can intervene with your servicer on your behalf.
Where Can You Get Free Military Legal Help in Florida?
Florida's major military installations have legal assistance offices that provide free legal help to active-duty service members, including foreclosure-related matters. These offices can review your mortgage documents, help you assert your SCRA rights, draft correspondence to your lender, and refer you to civilian attorneys if necessary.
Key military legal assistance offices in Florida:
- MacDill AFB (Tampa): 6th Air Mobility Wing Legal Office
- NAS Jacksonville: Region Legal Service Office Southeast
- NAS Pensacola: Region Legal Service Office Southeast (Detachment)
- Patrick Space Force Base (Cocoa Beach): 45th Space Wing Legal Office
- Eglin AFB (Fort Walton Beach): 96th Test Wing Legal Office
- Naval Station Mayport (Jacksonville): Legal Assistance Office
- Homestead Air Reserve Base: 482nd Fighter Wing Legal Office
Additional resources include Military OneSource (800-342-9647), which provides free financial counseling and legal referrals, and the Armed Forces Legal Assistance website at legalassistance.law.af.mil. The ABA Military Pro Bono Project connects service members with volunteer civilian attorneys for more complex cases.
If you are an active-duty service member or veteran facing foreclosure in Florida, contact us for free help. We understand military housing challenges and will connect you with the right resources.