On August 6, 2012, President Obama signed the Honoring America’s Veterans and Caring for Camp Lejeune Families Act, H.R. 1627. The act provides a number of protections to military veterans, notably an extension of the Servicemembers Civil Relief Act (SCRA) foreclosure protection and a temporary increase in VA loan limits.
Effective 180 days after the enactment of the act, Section 533 of the SCRA, the foreclosure protection is amended to expand the period of relief from sale, foreclosure, or seizure of the property from the period of military service plus nine months to the period of military service plus 12 months. The amendments are set to expire on December 31, 2014.
On August 6, 2012, the VA reverted to a previous calculation method to establish loan limits for VA guarantees. This change resulted in a temporary increase in some loan limits. The restored calculation method will be in effect until December 31, 2014. The loan limits for loans closed on or after August 6, 2012, through December 31, 2012, have been posted on the VA website. Loan limits for 2013 will be posted as soon as the VA receives median price data from the Federal Housing Finance Agency.