Banks wrongfully foreclosed the homes of more than 700 military families during the financial crisis, a number much higher than originally thought. The federal Servicemembers Civil Relief Act (SCRA) provides certain legal protections to military personnel while they are on active duty. Additionally, Michigan’s Act 138 of 2008 provides protection against certain types of foreclosures for military personnel while they are on active duty and up to six months after their tour of duty has ended.
Some of the largest American banks foreclosed on active duty including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. These banks wrongfully seized the homes of hundreds of American service members on active duty. It seems they are ignoring the protections to active duty provided by SCRA (Servicemembers Civil Relief Act).
In January of this year, 2013 A U.S. congressional oversight panel asked regulators to delay a multibillion-dollar mortgage settlement with 14 large banks so that the lawmakers could review the deal. Bank of America, Citigroup, JPMorgan Chase and Wells Fargo uncovered the foreclosures of active duty military while analyzing mortgages as part of a multibillion-dollar settlement deal with federal authorities. In January, regulators ordered the banks to identify military members and other borrowers who were evicted in violation of federal law.
The analysis, which was turned over to regulators in recent days, provides the first detailed glimpse into the extent of wrongful foreclosures amid the collapse of the housing market. Lenders previously acknowledged that they relied on faulty documents to push through foreclosures.
This is a black mark on American banks. It is a losing proposition for the banks to delay settlements. The American people hold our service members in high esteem. Snatching homes of military service members while they are on active duty in Iraq or Afghanistan and in harm’s way will bring more distain on the banks. Those who serve and their loved ones are making huge sacrifices to protect our nation and they should not lose their homes because of it.
It would be in the best interest of these banks to make a quick settlement. They need to follow the law and respect our nation’s heroes.
We invite you to tell us what you think on this issue. If you have had issues with banks while serving, please share them. MilitaryConnection.com thanks all the men and women who wear our nation’s uniform. They deserve the best America has to offer including obtaining excellent jobs, an education and the American Dream of owning their own home.