JPMorgan Chase Repurchases Soldier's Home Same Day He Returns From Iraq

In America today, even men and women returning from war can't expect their families to be exempt from the foreclosure crisis.

On the same day that soldier Aaron Collette returned from a tour of duty in Iraq to his father Tim's home in Bend, Oregon, that very house was bought back at auction due to foreclosure, local news KTVZ reports. According to ThinkProgess, a campaign by Senator Jeff Merkely (D-OR ) had delayed the foreclosure proceedings. But still, despite promising to work with the Collettes, JPMorgan Chase eventually went through with reportedly repurchasing the home.

Aaron and his dad are no different from the millions of people who have been foreclosed upon due to a crisis that has seen also affected numbers of military personnel.

"Average Joe, nobody special -- even my situation isn't special," Collette's father told local news KTVZ, despite his son's status as an active-duty member of the military. Under the Servicemembers Civil Relief Act, active-duty soldiers are protected against foreclosure unless it is court-ordered, but Collette's case would seem to imply that a parent's foreclosure is not covered.

Collette's case if far from the first military-related foreclosure controversy. The Justice Department recently agreed to a $22 million settlement with a unit of Bank of America and Saxon Mortgage Services, a division of Morgan Stanley, to provide relief for more than 170 active-duty service members who were victims of improper foreclosure proceedings.

Likewise, JPMorgan Chase will pay $27 million in reparations for overcharging around 6,000 active-duty military personnel on their mortgages, according to Businessweek.

While Aaron will be returning to Iraq after his two-week leave, his father Tim, who could no longer afford mortgage payments after his construction business failed during the recession, will be facing an eviction notice soon. His lawyers are determined to fight the foreclosure. And for Aaron, that's additional stress that he doesn't need.

"To have to worry about if he is going to be in a house when I come home," Collete told KTVZ, "it's just always worried me."

Comments

[Wesley Corbett]

12:37 AM on 09/09/2011

Speak with your money. If you get as outraged as I do by these companies move you money to a bank that cares. Take a look at the Move Your Money Project (http://moveyourmoneyproject.org/) and learn what you can do to strike a blow to these greedy banks who would rather just take the money and run.

[armybeans]

07:19 PM on 08/23/2011

This entire story is ridiculous.

First of all, it wasn't his home, it was his parents. Why should the soldiers and sailors act count towards parents? The service member is obviously and adult and the parents aren't legally responsible for the service member anymore. If they allowed it for parents, the next story would be soldiers grandparent/cousins/slash second cousin 3 times removed home is foreclosed on.


Second of all, if this home was truly so important to this soldier, why didn't he chip in to help make the mortgage payments?

I remember when this story originally came up. The father at that time said that he actually had the money to pay the mortgage, but was told to qualify for the mortgage reduction program he needed to skip some payments. So he purposefully didn't make several payments then whined and cried to the media when he lost his home because of his greediness. If he was able to make the original payments, he should have quit while he was ahead and just continue to make them rather then trying to scam the banks and the government into lowering his payments.

[tuniep1968]

09:39 AM on 09/03/2011

I do not agree as I myself am going through the sam thing with chase as they should not say to stop paying your payments so you can get the home mot loan everyone is having hard times and will try to do what they can to make ends meet.I could pay my morgage also but I needed some help as things are getting harder and I was trying to reduse my bills before I could not pay it.And as far as that goes it is not greed as you are still going to pay the whole loan amount it will just be a longer term with a smaller payment.The point is Chase is doing this to millions of people who are not as lucky as others and they need to be stoped.

[shockaslim]

05:34 PM on 09/06/2011

As I work for Chase, we generally do not tell people to stop making payments if they are applying for a modification. But, there is nothing wrong with getting a modification, people fall on hard times and a lot of the hardship reasons we get are health related or loss of income. I rarely see someone just trying to get a cheaper mortgage payment because they want to....they generally need it.

[TeebagsKiLLingAMERICA]

10:18 PM on 08/14/2011

How can Americans prosper when businesses act
in such an UN-American manner ?

[taxedup]

04:23 PM on 08/14/2011

With property values as low as they are, it should be no wonder why banks are eager to foreclose.

[lcr999]

06:19 PM on 08/14/2011

Makes no sense. Low prices just means the value of their asset is low, less than they loaned , and they lose money..

[jane13]

09:41 AM on 08/15/2011

Your right, when prices are low, they just hold onto them until they rise again, same as Warren Buffet said on the stock market, when stocks fall low, HE BUYS. Jane.

[andyg]

02:43 PM on 08/14/2011

Horrible headline, it wasn't the solider home it was his father's.

[jane13]

09:42 AM on 08/15/2011

WELL he lived there, so basically is without a home too. jane

[jdcapshew]

01:46 PM on 08/14/2011

American banks are the epitome of evil no matter what BS they sling at us saying otherwise. This is a disgrace.

[clearasmud]

01:16 PM on 08/14/2011

These Mortgage Companies/Banks defraud everyone they can, then when caught pay some small fine. The Executives get to keep the bonuses that came from the fraud, and no one goes to jail.

That is Capatalism in America, kill, steal, defraud, cheat...until your caught. Then, move on to the next criminal money making scheme. Making money all the way.

[lotusmktg]

01:14 PM on 08/14/2011

This is a disgrace! Perhaps congress would like to contribute some of their grossly overpaid salaries to our service men and women so that when they do come home for a TWO WEEK LEAVE, they have someplace to come home to!!!! Its time to put the bailout money where it belongs!

[J S K]

12:27 PM on 08/14/2011

we bailed out the banks, now they are rich again, but nothing for american citizens who are not wealthy

[steelej]

02:18 AM on 08/14/2011

Unfortunately, I doubt they would have been able to save the house regardless - many of the soldires returning are ill-prepared and unskilled for a working life in this economy. That's why so may went to these effed-up wars in the first place. Without years of training and education, many - can't expect to make an actual living when they return.

[lcr999]

06:20 PM on 08/14/2011

it was not his house, it was his father's/

[jane13]

09:43 AM on 08/15/2011

HE LIved there. Jane

[goodmarina]

10:41 PM on 08/13/2011

When is the Republican Tea Party going to stand up for the American consume, the American soldier and the American Family?

[bob riversmith]

01:39 AM on 08/14/2011

They're too busy protecting billionaires.

[clearasmud]

01:17 PM on 08/14/2011

Sorry, you don't have a lobbiest, or the money to make a sufficient campaign donation.

[jaem71]

08:58 PM on 08/13/2011

While everyone was bashing Obama, the Congress for the "debt/default crisis", who was standing on the sidelines, out of the limelight? The banks, and their multi-millionaire owners and managers. Go back to 2008. Who caused the financial implosion then? The banks. Who is still profitting now from the pain and anguish of thousands and thousands of citizens? The banks. There was a reason that FDR and the Federal Government moved to regulate the banks during the Great Depression. Ever since, the banks have been working overtime to shed themselves from ANY regulation by the government. And this is what the Tea party wants. A government that has no power to oversee ANYTHING the banks do.

[goodmarina]

10:41 PM on 08/13/2011

AMEN!!

 F & F

[jmyeagley]

01:50 AM on 08/14/2011

The tea party wasn't around when Glass-Steagall was repealed or when the up-tick rule was repealed, and I don't know any conservative or tea party proponent who would be against reinstating them. There were many causes of the financial crisis but one of them wasn't the tea party. If you are mad about TARP then you should probably join the tea party, since members such as Michele Bachmann voted against TARP. Bachmann is a tea party candidate and she voted against bailing out the banks. Who voted FOR bailing them out? Obama for one. I can't say I'm a fan of the Dodd-Frank "financial regulation" that permanently insulates banks from the risks they take and left the Fannie and Freddy loan faucets on full blast. Also, the banks are never on the sidelines. They created the bailout game. Opposition to Dodd-Frank was and is justified. Obama's HAMP is just more of the same and a colossal failure by anyone's measure.

[clearasmud]

01:21 PM on 08/14/2011

Join the Baggers? Support Bachmann? Ummm... no thanks, and besides, your rambling argument is full of half truths and the type of misinformation one develops while listening to Fox.

[Alan Crooks]

07:08 AM on 09/15/2011

Erm, they bailed out the banks to......STOP THE COLLAPSE OF THE ENTIRE U.S ECONOMY AND THUS THE WORLD ECONOMY. I'm not actually concerned the banks were bailed out. I am extremely concerned that nothing has changed a whole lot since they were, the executives are still getting ludicrous salaries and bonuses (I'm not against high remuneration for executives, it just needs to be in step with actual performance based on something other than net profits, regardless of where they come from. Anyone can fire 50k people and save money for that quarter. How about attaching bonus payments to company performance in 10 years time?) and no one has gone to prison, regulation hasn't improved and homeowners (not all, and not really this guy) are still getting used and abused. I'm glad they avoided a depression by bailing the banks out, but what NOW!? Do something! If they dont - stuff it - Bring On The Depression!

[doris french]

07:35 PM on 08/13/2011

And we bailed out these banks? We should kick them out of the USA.

[Stephen Normandin]

05:57 PM on 08/13/2011

I GO to estatee sales and yards sales all over my city and it s the same LYING story either about BOA, Chase, Citi, are the players I hear from all these people these banks are robbing us blind and lying.Its pathetic.

[Stephen Normandin]

05:54 PM on 08/13/2011

peoria AZ he was selling his harley I just left another victim of the banks, CiTi, another bait and switch U must fall behind and we will help NOW AFTER 3 MO PAYMENTS set for auction late AUG THIS whole Hamp program IS a scam they lie to you.