While military personnel are deployed on active duty, their financial obligations at home do not end. However, due to their location, orders, and communications availability, many are unable to make their monthly mortgage payments on time. Some make arrangements with family members or close friends to manage their finances while they are away. For others, this is not an option, and they may return home to find foreclosure on their house.
A new piece of legislation under consideration by the New Jersey Senate committee addresses this issue. The bill, referred to as A-766, allows any resident of the state placed on active duty to request temporary suspension of their mortgage principal and interest payments. The mortgage must have been secured before the military member goes on active duty, and the suspension does not include the payment of escrow items such as property tax or homeowner's insurance.
This option would be available to any member of the military on active duty, including reservists and those in the National Guard. Only a mortgage on a primary residence can be suspended through this program.
To apply, the deployed homeowner would need to submit a written request for suspension to their lender, along with a copy of their military orders and a contact person who can supply additional information about the mortgage while the resident is away.
The measure is currently awaiting a vote by the New Jersey Senate.
Moneytips can help you refinance your existing home loan.