Banks May Have Illegally Foreclosed On Nearly 5,000 Military Members

Even those people putting their lives on the line for their country may not be safe from the American foreclosure crisis.

Ten lenders are reviewing close to 5,000 foreclosures of homes belonging to active-duty service members in an attempt to discover if they were carried out improperly, according to data from the Office of the Comptroller of the Currency, cited by the Financial Times. The OCC's report is based on projections prepared by the lenders and and their consultants. Bank of America said it is reviewing 2,400 foreclosures of homes belonging to active-duty service members and Wells Fargo said it's looking at nearly 900 cases. Citigroup is reviewing 700 foreclosures, the bank said.

The Servicemembers Civil Relief act aims to protect active-duty members of the military from financial difficulty, including through measures that restrict foreclosures on properties owned by active-duty military members. Still, as the OCC data indicates, thousands of active-duty members of the armed forces have lost their homes while fighting abroad.

Bank of America and Morgan Stanley reached deals with the Justice Department earlier this year, agreeing to pay more than $20 million to settle claims that they foreclosed on more than 175 active-duty service members without court orders.

They're not the only ones. JPMorgan Chase also admitted to illegally foreclosing on the families of 27 active-duty military members earlier this year and has very publicly attempted to give the families back their homes or compensate them for damages if the house was sold.

The bank also agreed to pay $27 million in cash to about 6,000 active-duty service members who were overcharged on their mortgages, Bloomberg reports.

Illegal foreclosures have affected service members like U.S. Army Sgt. James Hurley who lost his house to foreclosure while he was serving in Iraq. Tim Collette said in June that he had been negotiating with JPMorgan Chase since 2008 to save his house from foreclosure while his son was serving in Iraq.

Though illegal foreclosures may be some of the most egregious examples of lenders mistreating service members, banks have wronged members of the military in other ways. An October lawsuit claims that 13 banks and mortgage companies charged hidden and illegal fees from veterans trying to refinance their homes.

Comments

[cybersleuth58]

01:01 PM on 01/04/2013

Well God Bless America! (Rolling eyes) Is there no civility left in the business world?

[hmagbie]

12:07 PM on 01/03/2013

My God,can we be more venal and ungrateful to our returning military families by taking their homes illegally? This is the ultimate manifistation of banks and Wall St simply out of control. Then there is Sen. Olympia Snow's husband, Jock Mc Kiernan, whos "educational" for profit companies are under investigation by the Justice Dept. for milking returning veterans frauduently. I ask the First Lady, Michelle Obama and her Husband Barack Obama to stop these predators from preying on our brave returning service men and women

[Karen Lynee Nicholson]

01:42 PM on 06/19/2012

Not surprised to hear this at all. The rich don't care. No veteran should be living on the streets homeless after all they've done for our country.

[Milton Findley]

12:26 PM on 06/18/2012

What they did is illegal, what is important is that it be remedied, and the remedy should make sure that any harm falls on the ones who committed the crime. Damages should be awarded, say to the amount of the mortgage owed, and the family should be put back in the home.

[cybersleuth58]

01:08 PM on 01/04/2013

A man goes in and shoots/kills a convenience store clerk. He's arrested, tried and executed. But: a group of white collar criminals use our military to attack a third world country to steal its minerals/natural resources. This results in the deaths of thousands (or hundreds of thousands) of civilians. They might retire as billionaires & even run for office. Mark my words they will never see the inside of a courtroom as defendants.

[drew2012]

12:56 PM on 01/31/2012

If you lost your home in foreclosure or forced to short sell your home because your lender would not work with you, you can contact this law firm to see if they can help. www.robosignature.com

[southingtonian]

05:52 AM on 12/05/2011

Greed knows no bounds, and everyone is a mark.

[moonwolfph]

10:16 AM on 12/01/2011

First, we'll take your right leg, then we'll take your left hand. Now we'll take your house. And.. oh, yeah! We'll give Blackwater, Haliburton and the Commie Chinese your money and your kids' futures.
Now, bend over! The Dick and the Bush are are gonna take your DIGNITY again!

[Gonzo333]

06:37 AM on 12/01/2011

The banks are so patriotic!

[Paris215]

03:52 AM on 12/01/2011

What a sad state of affairs... As long as monetary fines are the only punition this will keep occurring. There needs to be more severe repercussions from these irresponsible acts and someone, an individual needs to be held (criminally?) accountable..and not hide behind the 'institution'. Real lives, real families are suffering from this shameful greed.

[mumi009]

07:58 AM on 12/01/2011

I say draft the criminal bankster executives and send them to Afghanistan - without body armor.

Can't these people be deemed domestic terrorists and sent to Gitmo forever, according to the new law passed by the U.S. Senate?

I think, though, that sending these people to Afghanistan would be more appropiriate.

[TeeLolly]

01:38 AM on 12/01/2011

When are they going to go after the lawyers who bring these foreclosure suits? They know (or should know) the rules for suing active duty military personnel. They also know what a fraudulent affidavit is, and in most states are required to act in accordance with the "highest ethical standards" ...

[Randall Winn]

12:02 PM on 12/01/2011

In many states, you can file an ethics complaint with the lawyer's bar association. It doesn't cost anything and ... as long as you are careful and moderate in your complaint ... it may get some action.

[742]

05:00 PM on 11/30/2011

Anyone know who get's the money from the fines?

Does it go to the people who were hurt, or to some rat hole in the Federal Government?

Wonder if the banks deduct it as an expense on their tax returns?

Even 1 eviction is too many!

[Mister Grumpy]

03:22 PM on 11/30/2011

How many in Congress were improperly foreclosed upon? ZERO. Why? Because they are exempt from the pressures of everyday life. We need a Revolution........ NOW!

[Jeff Gerhard]

08:54 PM on 11/30/2011

Right on! Power to the people!

[Shari Greer]

01:38 PM on 11/30/2011

Our US troops, retired, or serving our country currently, should have some privledges of keeping these lenders from taking their homes. They are defending or have defended our country and we,
as countrymen should stop doing business with the banks and lenders that take their homes, many times while they are overseas. When you risk your life for your country.. you should be able to trust that your home is safe from thieves.. (banks)

[ScarlettMocha]

11:30 AM on 11/30/2011

Capitalism is out of control!

[southingtonian]

05:54 AM on 12/05/2011

control capitalism?! gasp!! Ron Paul says shut your mouth!

[Karma2U]

09:43 AM on 11/30/2011

..."only a pawn in their game..." - Bob Dylan