How is the reasonable diligence timeframe for foreclosure calculated for borrowers protected under the Servicemembers Civil Relief Act (SCRA)?

When calculating deadlines to commence foreclosure or acquire Property by other means, the Mortgagee may exclude the period of time when the Borrower is in Active Duty military service.  HUD does not consider postponement or delay in initiating a foreclosure while the Borrower is Active Duty military service a failure to exercise reasonable diligence.
The Mortgagee may voluntarily withhold foreclosure with or without applying Partial Payments that advance the date of Default.
The Mortgagee must document any delays associated with compliance with the SCRA in the Claim Review File.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

For policy information see Handbook 4000.1 Sections III.A.3.j. & IV.A.1.c. at

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04692