Nearly 1,500 additional members of the military are eligible for more than $186 million in foreclosure reimbursements under the Servicemembers Civil Relief Act (SCRA), according to the Justice Department. In addition to other compensation, a total of 2,413 service members and their co-borrowers are eligible to receive more than $311 million.
The five mortgage servicers include:
- JP Morgan Chase Bank N.A. (JP Morgan Chase);
- Wells Fargo Bank N.A. and Wells Fargo & Co. (Wells Fargo);
- Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc. (Citi);
- GMAC Mortgage LLC, Ally Financial Inc. and Residential Capital LLC (GMAC Mortgage);
- Bank of America N.A., Countrywide Home Loans Inc., Countrywide Financial Corp., Countrywide Home Loans Servicing L.P. and BAC Home Loans Servicing L.P. (Bank of America).
The compensation is a result of the 2012 settlement known as the National Mortgage Settlement (NMS) and an earlier settlement with Bank of America. It affects foreclosures that took place between January 1, 2006, and April 4, 2012, where the servicer obtained a foreclosure without a judicial proceeding or where the servicer obtained a default foreclosure judgment without filing a proper affidavit with the court stating that the service member was serving in the military.
For mortgages serviced by Bank of America, Wells Fargo, Citi, and GMAC Mortgage, members of the military who qualify will each receive $125,000, plus any lost equity in the property and interest on that equity. Eligible co-borrowers will also be compensated for their share of any lost equity in the property.
Members of the military and their dependents who believe that their SCRA rights have been violated should speak with an experienced foreclosure defense attorney immediately. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.
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