S 2981

110th CONGRESS
2d Session

S. 2981

To amend the Servicemembers Civil Relief Act to provide a one-year period of protection against mortgage foreclosures for certain disabled or severely injured servicemembers, and for other purposes.

IN THE SENATE OF THE UNITED STATES

May 6, 2008

Mr. CASEY (for himself and Mr. ISAKSON) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

A BILL

To amend the Servicemembers Civil Relief Act to provide a one-year period of protection against mortgage foreclosures for certain disabled or severely injured servicemembers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Disabled Veterans Home Ownership Preservation Act of 2008'.

SEC. 2. EXPANDED PERIOD OF PROTECTION AGAINST MORTGAGE FORECLOSURES FOR CERTAIN DISABLED OR SEVERELY INJURED SERVICEMEMBERS.

    (a) Expanded Period of Protection- Section 303 of the Servicemembers Civil Relief Act (50 U.S.C. App. 533) is amended--

      (1) by striking subsection (c) and inserting the following new subsection (c):

    `(c) Sale or Foreclosure-

      `(1) IN GENERAL- A sale, foreclosure, or seizure of property for a breach of an obligation described in subsection (a) shall not be valid if made during the period applicable to a servicemember as specified in paragraph (2) except--

        `(A) upon a court order granted before such sale, foreclosure, or seizure with a return made and approved by the court; or

        `(B) if made pursuant to an agreement as provided in section 107.

      `(2) APPLICABLE PERIODS- The period applicable to a servicemember under paragraph (1) is the appropriate period as follows:

        `(A) In the case of a servicemember who incurs a serious injury or illness during the period of the servicemember's military service, during the period of the servicemember's military service and within one year after.

        `(B) In the case of an individual (including a servicemember otherwise covered by subparagraph (A)), who, within one year after the individual's period of military service as a servicemember, files a claim with the Secretary of Veterans Affairs for disability compensation under title 38, United States Code, during the period of the individual's military service as a servicemember and until 30 days after the date of the final adjudication of such claim (including any review or appeal of such claim if applicable).

        `(C) In the case of any other servicemember, during the period of the servicemember's military service and within 90 days after.'; and

      (2) by adding at the end the following new subsection:

    `(e) Serious Injury or Illness Defined- In this section, the term `serious injury or illness', in the case of a servicemember, means an injury or illness incurred by the servicemember in line of duty on duty as described in section 101(2)(A) that may render the servicemember medically unfit to perform the duties of the servicemember's office, grade, rank, or rating.'.

    (b) Effective Date- The amendments made by subsection (a) shall take effect on the date of the enactment of this Act, and shall apply to any sale, foreclosure, or seizure or property that occurs on or after that date.

END