Sec. 11. Mortgage protection for members of the Armed Forces, surviving spouses, and certain veterans
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Title III of the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) is amended by inserting after section 303 the following new section: This section applies only to an obligation on real or personal property owned by a covered individual that— originated at any time and for which the covered individual is still obligated; and is secured by a mortgage, trust deed, or other security in the nature of a mortgage. In accordance with subsection (d)(1), in a judicial action pending or in a nonjudicial action commenced during a covered time period to enforce an obligation described in subsection (a), a court— may, after a hearing and on its own motion, stay the proceedings until the end of the covered time period; and shall, upon application by a covered individual, stay the proceedings until the end of the covered time period.
Upon receipt of notice provided under subsection (d)(1), a mortgagee, trustee, or other creditor seeking to foreclose on real property secured by an obligation covered by this section using any judicial or nonjudicial proceedings shall immediately stop any such proceeding until the end of the covered time period. A sale, judicial or nonjudicial foreclosure, or seizure of property for a breach of an obligation described in subsection
(a)that is not stayed under subsection
(b)shall not be valid during a covered time period except— upon a court order granted before such sale, judicial or nonjudicial foreclosure, or seizure with a return made and approved by the court; or if made pursuant to an agreement as provided in section 107. To be covered under this section, a covered individual shall provide to the mortgagee, trustee, or other creditor written notice that such individual is so covered. Written notice under paragraph
(1)may be provided electronically. Notice provided under paragraph
(1)shall be provided during the covered time period. With respect to a servicemember described in subsection (g)(1)(A), notice shall include— a copy of the servicemember’s official military orders, or any notification, certification, or verification from a servicemember's commanding officer that provides evidence of servicemember's eligibility for special pay as described in subsection (g)(1)(A); or an official notice using a form designed under paragraph (5). The Secretary of Defense shall design and distribute an official Department of Defense form that can be used by an individual to give notice under paragraph (1). Failure by any individual to use a form designed or distributed under subparagraph
(A)to provide notice shall not make such provision of notice invalid. The aggregate duration for which a covered individual (except a servicemember described in subsection (g)(1)(A)) may be covered under this section is one year. A person who knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by subsection (c), or who knowingly attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both. In this section: The term covered individual means the following individuals: A servicemember who is or was eligible for hostile fire or imminent danger special pay under section 310 of title 37, United States Code, during a period of military service. A servicemember placed on convalescent status, including a servicemember transferred to the temporary disability retired list under section 1202 or 1205 of title 10, United States Code. A veteran who was medically discharged and retired under chapter 61 of title 10, United States Code, except for a veteran described in section 1207 of such title. A surviving spouse (as defined in section 101(3) of title 38, United States Code, and in accordance with section 103 of such title) of a servicemember who died while in military service if such spouse is the successor in interest to property covered under subsection (a). The term covered time period means the following time periods: With respect to a servicemember who is or was eligible for hostile fire or imminent danger special pay under section 310 of title 37, United States Code, during a period of military service, during the period beginning on the first day on which the servicemember is or was eligible for such special pay during such period of military service and ending on the date that is one year after the last day of such period of military service. With respect to a servicemember described in paragraph (1)(B), during the one-year period beginning on the date on which the servicemember is placed on convalescent status or transferred to the temporary disability retired list under section 1202 or 1205 of title 10, United States Code. With respect to a veteran described in paragraph (1)(C), during the one-year period beginning on the date of the retirement of such veteran. With respect to a surviving spouse of a servicemember as described in paragraph (1)(D), during the one-year period beginning on the date on which the spouse receives notice of the death of the servicemember. . The table of contents in section 1(b) of such Act is amended by inserting after the item relating to section 303 the following new item: Sec. 303A. Mortgages and trust deeds of certain servicemembers, surviving spouses, and disabled veterans. . Section 107 of the Servicemembers Civil Relief Act ( 50 U.S.C. App. 517 ) is amended by adding at the end the following: For purposes of this section, the term servicemember includes any covered individual under section 303A. . Paragraph
(3)of section 801(b) of the Servicemembers Civil Relief Act ( 50 U.S.C. App. 597(b)(3) ) is amended to read as follows: to vindicate the public interest, assess a civil penalty— with respect to a violation of section 207, 303, or 303A regarding real property— in an amount not exceeding $110,000 for a first violation; and in an amount not exceeding $220,000 for any subsequent violation; and with respect to any other violation of this Act— in an amount not exceeding $55,000 for a first violation; and in an amount not exceeding $110,000 for any subsequent violation. . Section 108 of such Act ( 50 U.S.C. App. 518 ) is amended— by striking Application by and inserting
(a); and Application or receipt .—Application by by adding at the end the following new subsection: In addition to the protections under subsection (a), an individual who is entitled to any right or protection provided under this Act may not be denied or refused credit or be subject to any other action described under paragraphs
(1)through
(6)of subsection
(a)solely by reason of such entitlement. . Section 303A of the Servicemembers Civil Relief Act, as added by subsection (a), and the amendments made by this section, shall take effect on October 1, 2014.