Settlements for Unlawful Foreclosures
Foreclosures are something that no family wants to go through and nor should they. This is especially true for those people who are out there serving our country to make sure that we are safe. But in some cases, these foreclosures are unlawful and should not stand. This is the case that happened for around 300 service people who were actually foreclosed on between the years of 2006 and 2010. The reason for this is because the mortgage servicers were in violation of the Service Members Civil Relief Act. The Justice Department was not going to stand for this violation. Here is what happened.
More than 300 service members are expected to get around $89 million in relief for their mortgage servicers that were allegedly in violation of the Service Members Civil Relief Act. The victims get this money as a result of settlements in 2011 that the Justice Department had with BAC Home Loans Servicing LP and Saxon Mortgage Servicing Inc. BAC Home Loans Servicing LP is a subsidiary the Bank of America Corp. while Saxon Mortgage Servicing Inc. is a subsidiary of Morgan Stanley. These organizations unlawfully foreclosed on these homes and were punished very harshly for these violations. According to the settlement that was made first, Bank of America is required to pay the affected service members between 2006 and 2010 over $36.8 million. They would each get at least $116,785 as well as being compensated for any equity lost with interest. Bank of America has already paid out money for around 142 service members who had their homes illegally foreclosed on between 2006 and the middle of 2009. Another settlement forced Saxon Mortgage Servicing to pay out over $2.5 million to around 19 service members who were affected by these unlawful foreclosures. Each of these service members will get around $130,556 as well as any equity lost with interest.
This is just one of the many problems that were being looked at by the Justice Department. They are also part of another settlement along with 5 of the other major mortgage lenders for violations in the foreclosure practices including not abiding by the 6% interest cap that was set up by the Service Members Civil Relief Act. There are a variety of audits being done by the National Mortgage Audits. Along with the Justice Department, they do not believe that service members need to worry all about their homes being foreclosed on while they are out service their country.
Service members sacrifice so much for this country and they have enough to worry about when they are overseas. They are already worried about getting home to their loved ones, they should not have to also worry about not having a home to come home to. The Justice Department is working very hard to keep the service members protected from all types of injustice that can hurt them, strongly enforcing all of the laws that were put in place to protect these people who are willing to sacrifice themselves to protect us.Forclosure Defense Attorney