Can I get out of a Mortgage Contract, because I received military orders for a deployment?

Question

In November 2010, my wife and I signed for a house to be built by March 2011. A few days ago I received orders to deploy in Feb 2011. Can I get out of the mortgage contract with the builders since I received orders to deploy? Hopefully with no penalties.

Answer 1

Hello.



This is a question for an attorney.



However.



A. Maybe but you might lose any Earnest Money you put down as a deposit.

B. Deployment is not a PCS. You are coming back to that base. So, let the house be built as planned. Or are you mixing up the definitions between PCS and Deployment?

C. If you default now you may not be able to be trustworthy the next time you want to build or purchase a house.

D. You are having the house build because you don't want to move anyplace else so why cancel it?



Why military people buy or build houses I can not understand. The nature of the military is to be MOBILE and available for worldwide assignments.



Time to buy a house when you are no longer in the military. Up until that happens you must always RENT. Your liability for renting is only the year of the lease!



Think it over carefully and then spend more money to hire an attorney.



Best wishes,



Larry Smith

Senior Master Sergeant, USAF (Ret.)

First Sergeant

Answer 2

First, you do have a contract with the builder, its the signed 14 pages of agreements. If this contract isn't signed by you and the builder, then you should be able to cancel the contract. However, if it was done in November 2010, I'm betting its been signed and ratified, which means that you are in the deal.



Unless there is a contingency/clause in the contract that it can be cancelled if you are deployed, it may be still binding. Just because you are in the military DOES NOT give you the right to cancel the contract.



On Monday, i would talk with the builder. I would give them a written, signed letter by you asking to be released from the contract and your deposit returned in full. Along with this letter, give a copy of your orders. THen it's up to the builder to either A) release you and give you the deposit back, B) release you and hold your deposit or C) not release you and ask that you settle. If the builder decides on options B and C. Then talk with a lawyer. However, until you ask IN WRITING, you have no idea how it's going to go.

Answer 3

military provides free legal counsiling for active duty military just have your brother contact any major military installation look for a legal services office. I would do this right away, if he's obligated to deploy i wouldnt want to miss the boat. But then if there is a mix up and i was supposed to be in rotc not getting my head shot off by snipers or blown up by roadside bombs.. i'd want to know that too. Legal services office should be able to help you sort it out. Also a phone call to the order issuing authority. Explain your situation and ask for guidance. IF there's no contract or guarentee expect to deploy to iraq. You might alsso clear up a lot by contacting the recruiter that sold u ROTC also. He might still be laughing tho.. Regardless you need to resolve if there is a mixup if it's your misunderstanding, or theirs. IF your brother is already in ROTC he can ask his instructors for guidance also. i'd try in this order (depending on situation) ROTC staff (if currently enrolled) recruiter if he's the last person u talked to prior to getting orders legal services if you have a signed contract specifying ROTC order issuing authority trying to join ROTC after you have orders in hand is probably not gonna happen unless your last name is cheny or bush etc..

Answer 4

I find it hard to believe that you did not know that sometime, in the near future, you did not know you were going to deploy. You usually receive deployment orders a few months prior, and you also train SEVERAL months prior. So, you "just receiving" your orders, and not knowing about it, seem hard for me to believe. Anyway, on to your question.



The Soldiers and sailors act, will only keep the interest down on the Mortgage to under a certain percentage, NOT get out of the contract. What you got was a loan, and you must pay your financial obligations, not anyone else. The act does allow you to terminate a lease on a car, end a contract for an apartment or any other "temporary" contracts that you may have. ie (gym member ships, tanning salon memberships.ETC)



A lot of service members still pay their mortagmortgages serving, and get most of it payed off because of the extra pay they reiceve, as well as the interest rate cap. I would advise that you take advantage of this.

Answer 5

I would ask your mortgage broker and or your commander. I do know that as a landlord I originally rented our condo to military, thinking "Stability" ect... But it only took them a few weeks to discover chrystal meth and after consulting attorneys, and $ thousands in damage to my home. We discovered that we could not evict them because we are at war. Didn't matter he was not deployed or that they hadn't paid rent. Lukily they after neighbors called police and thier kids were taken away, the packed up and took off for vegas and were never heard from again. Broke my heart for the kids, but as a civilian, I had no legal re-course. So I would think the fact that you are fighting for our country there should be some legal way to assist you.

Answer 6

Why would deployment affect your mortgage contract? It shouldn't. Tens of thousands of military personnel have deployed who hold mortgage contracts, myself included. I seriously doubt that the terms of your mortgage contract call for termination upon deployment.

Answer 7

Unless it is written in the contract that you are pardoned of the mortgage because of a change of military orders, no you can't get out of the contract.



I forgot too mention this- Thanks for your service and I hope you get this matter taken care of....GOOD LUCK MY FRIEND.