Pub. 4 2013 Issue 1

spring 2013 9 and breaches the terms of the contract before or during military service, the Act prohibits a bank from rescinding or terminating the contract or repossessing the property without a court order. This prohibition applies only to contracts on which the servicemember has paid a deposit or installment before entering military service. 5.Special Provisions Relating to Mortgages and Trust Deeds. In an action to enforce a mortgage or deed of trust against a servicemember, filed within nine months of his or her military service, the court may order that the amount of the servicemember’s equity in the property be paid to the servicemember as a condition of foreclosing the mortgage, repossessing the property, or rescinding or terminating the contract. Additionally, if a financial institution sells, forecloses, or seizes property for breach of the obligation during or within nine months after the servicemember’s military service, the sale, foreclosure, or seizure will be invalid unless it was made under a court order or based on an agreement with the servicemember to waive the requirement for a court order. By understanding these five provisions of the Act, your busi- ness will be better prepared to take the necessary, proactive measures when servicing the obligations owed by service- members. Q Angela L. Beblo is a Senior Attorney at Spilman Thomas & Battle, PLLC. Her primary areas of practice are consumer finance, litigation and mine safety law. Contact Angela Beblo at 304.340.3852 or abeblo@ spilmanlaw.com . Brienne T. Marco is an Associate at Spilman Thomas & Battle, PLLC. Her primary areas of practice are consumer finance and general litigation. Contact Brienne Marco at 304.720.4060 or bmarco@ spilmanlaw.com . By understanding these five provisions of the Act, your business will be better prepared to take the necessary, proactive measures when servicing the obligations owed by servicemembers.