Judge: Gary I. Micon, Case: 24CHCP00070, Date: 2024-03-08 Tentative Ruling

Case Number: 24CHCP00070    Hearing Date: March 8, 2024    Dept: F43

Dept. F43

Date: 3-8-24

Case # 24CHCP00070, Daniel D. Spencer vs. Logix Federal Credi Union

Trial Date: N/A

PETITION FOR RELIEF FROM FINANCIAL OBLIGATION DURING MILITARY SERVICE

MOVING PARTY: Petitioner Daniel D. Spencer

RESPONDING PARTY: No response has been filed

SUMMARY OF ACTION

Petitioner Daniel D. Spencer (Petitioner) is an active duty military service member currently serving from June 8, 2023, until July 12, 2024. Using Forms MIL-010 and MIL-015, Petitioner has requested that the Court grant his Petition for relief from his mortgages for his residence located at 24313 La Montura Drive, Santa Clarita, CA 91354. Petitioner filed this petition pursuant to Military and Veterans Code § 409.3.

Section 409.3 reads in relevant part:

“(a) A service member may, at any time during their most current period of military service or within six months thereafter, petition a court for relief in respect of any obligation or liability incurred by the service member before the effective date of the orders for their most current period of military service or in respect of any tax or assessment whether falling due before or during their most current period of military service…

(d) If, after notice and hearing, the court finds the ability of the service member to comply with the terms of any such obligation or liability…has been materially affected by reason of their most current period of military service as defined in this chapter, the court may grant the following relief:

(1) In the case of an obligation payable in installments under a contract for the purchase of real estate, or secured by a mortgage or other instrument in the nature of a mortgage upon real estate, a deferment of the payments due on the obligation for a period of time equal to the period of military service, even if the service member requests the relief after the start of their current period of military service, subject to subdivision (a), and even if such payments extend beyond the termination of the period of military service. The obligation shall be extended, except as specified in subdivision (f), for the period of time that payments were deferred, and the deferred payments shall be paid in equal installments during the combined period at the rate of interest on the unpaid balance prescribed in the contract, or other instrument evidencing the obligation, for installments paid when due, and subject to any other terms as may be just. Penalties shall not be imposed on the nonpayment of principal or interest during this period. Interest shall not be charged or accumulated during the period of deferment unless otherwise ordered by the court…

(e) (1) When any court has granted a deferment as provided in this section, no fine or penalty shall accrue during the period the terms and conditions of the deferment are complied with by reason of failure to comply with the terms or conditions of the obligation, liability, tax, or assessment in respect of which the deferment was granted, including penalties on the nonpayment of principal or interest during this period. Interest shall not be charged or accumulated during the period of deferment unless otherwise ordered by the court. Foreclosure or repossession of property on which payment has been deferred shall not take place during the period specified in this section.”

In this case, Petitioner’s income is considerably less than what it was before he entered active duty service. His current pretax bimonthly income is $7,089.94, which includes non-taxable allowances for subsistence, housing, hardship duty, family separation, and imminent danger/hostile fire pay. Prior to mobilization, his pretax bimonthly income was $10,833.33. Petitioner represents that his income has been negatively and materially affected by his current period of military service.

The current amounts due on both of his mortgages, including overdue payment, are $5,801.50 and $4,895.28. (Spencer Decl., Ex. B.) The Court finds that Petitioner’s ability to comply with the terms of these mortgages has been materially affected by his current period of military service. Payments on his mortgages will be deferred for a period of time equal to the period of military service, pursuant to Military and Veterans Code § 409.3(d)(1).

Petitioner’s Petition for Relief from Financial Obligation is granted.