Wade Coye, Foreclosure Defense Attorney
The Servicemembers Civil Relief Act (SCRA) was designed and put in place to aid those on active military service from being involved in civil issues when they are overseas on deployment, fighting for their country. The SCRA helps alleviate worries for many deployed military personnel – it prevents them from being involved in a lawsuit such as a breach of contract, divorce, or bankruptcy. It helps servicemembers keep their debts manageable by assuring that mortgage companies and credit cards are limited in the interest amount they can charge to “protected” military personnel. It also includes provisions to protect active duty servicemembers from having their homes foreclosed upon. Unfortunately, in the last few years, many banks were conducting business against the servicemembers protected by this act.
In February the Department of Justice (DoJ) reached a settlement on behalf of active duty servicemembers whose rights were being violated in respects to their mortgages. Either these servicemembers were being charged too high an interest rate, or had been put into foreclosure although they were considered “protected” by SCRA. The settlement amount totals $25 billion. JPMorgan Chase & Co, Wells Fargo & Company, Citigroup Inc., and Ally Financial have all been instructed to conduct reviews into the matter, with the DoJ overseeing the investigation. These banks must provide mortgage relief and pay back the military homeowners who were foreclosed upon – at least $116,785 apiece, in addition to any home equity that would have accrued since the foreclosure. If a military servicemember was not foreclosed upon, but has been charged an interest rate in excess of the allotted amount, they may be eligible to receive up to four times the amount they overpaid in interest.
To find out if you qualify as a member of this settlement, there are a few simple questions to ask yourself:
- Is one of the mortgage holders on active duty with the Army, Navy, Air Force, Marine Corps, Coast Guard, or National Guard?
- Was the active duty servicemember’s mortgage held through one of the financial companies listed above? (Wells Fargo, Citigroup, or Ally Financial)
- Was the home foreclosed on since 2006?
- Was the mortgage rate on the home above 6%, or is it currently still above 6%?
If you can answer “yes” to these questions, you should consider contacting the Coye Law Firm immediately to discuss your rights and seek assistance as a recipient of this settlement. While the White House has stated) that eligible servicemembers do not have to apply to receive compensation, consulting with an attorney can help speed the process along and aid getting you your settlement amount quicker.