Court Favors Veterans

     Service members who were improperly foreclosed on will receive six-figure settlements as part of a secondary agreement to the $26 billion foreclosure abuses settlement announced last week.  

     Members of the U.S. military who are determined to have been victims of a wrongful foreclosure during the past six years will receive payments of at least $116,785, plus additional compensation equal to any home equity they may have lost. Some payments may be higher, depending on a review by banking regulators.  

     The payments will go to service members who were wrongly foreclosed on and after Jan. 1, 2006 and had mortgages with Wells Fargo, Citigroup or Ally Financial/GMAC. Those who had mortgages with JP Morgan Chase and were wrongly foreclosed during that time will have either their home returned to them free and clear of debt or a cash payment equal to the value of the property at the time of foreclosure.  

     The JP Morgan Chase settlement is structured to be consistent with a private settlement that was reached previously. Service members who suffered additional harms will also receive compensation from the four lenders.  

     The settlement and compensation is in addition to the $26 billion agreement reached last week to settle claims over improper foreclosure practices by the nation’s five largest mortgage lenders. The fifth, Bank of America, previously reached a settlement with the Justice Department to compensate service members who were wrongly foreclosed on.  

     The settlements stem from reported violations of the Service members Civil Relief Act (SCRA), which places limits on how far creditors can go in collecting debts from active duty service members. Among its provisions, service members serving in a live fire zone may not be foreclosed on without a court order.                     Service members will also be compensated if they were charged in excess of 6 percent on a mortgage loan after Jan. 1, 2008, provided they made a valid request to have their rate lowered. The SCRA provides that a service member can have their interest rate lowered to 6 percent on debt acquired before entering military service.  

     Email an experienced mortgage consultant to see if you qualify for quiet title services. There is no cost or obligation. paul@lakeviewservicegroup.com  or call us at 801-382-7162

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