Servicemembers Civil Relief Act

Key protections against HOA collection

• 6% interest cap on pre-service obligations (§ 3937) — excess is forgiven, not deferred; applies after written notice with a copy of orders.
• Protection from default judgments (§ 3931) — the HOA must file a military-status affidavit; the court may appoint counsel and stay the case, and a wrongful default can be reopened.
• Foreclosure needs a court order (§ 3953) — for a qualifying pre-service obligation, a lien sale/foreclosure during service and for one year after is valid only by court order. A nonjudicial foreclosure without one is invalid.
• Stay of proceedings (§ 3932) of at least 90 days where service affects the ability to appear.

What this means for a servicemember

An active-duty owner facing assessment-lien foreclosure or a collection suit has strong procedural protection — but several protections require affirmative action (written notice for the 6% cap; requesting a stay).

Unsettled: whether a specific HOA assessment lien is “in the nature of a mortgage” under § 3953 is fact-specific; assessments arising after service began may fall outside the pre-service protections.

Arizona law on the same topic

• A.R.S. § 33-1807 — Arizona: HOA liens & foreclosure

Primary sources

• SCRA section-by-section summary (Congress.gov / CRS)
• 50 U.S.C. § 3953 — mortgages & liens

This is general information, not legal advice. Federal law changes and the courts are still working out several of the points flagged above as unsettled. Verify anything you rely on, and talk to a lawyer about your specific situation.