Asserting that “the men and women who serve our nation in the armed forces deserve, at the very least, to know that they will not have their homes taken from them wrongfully,” the U.S. Department of Justice reached an agreement with Bank of America and Saxon Mortgage that will require BofA to pay $20 million to resolve the lawsuit and Saxon Mortgage Services to pay $2.35 million [1]. Both lenders will also compensate military members who were wrongfully foreclosed on during active duty and provide employees with additional SCRA training to help prevent future mistakes.
Only a federal court can authorize a foreclosure on an active duty military family serving in the Iraq/Afghanistan area [2]. Neither lender notified the military or state courts about foreclosure actions. Both lenders will reimburse families in addition to paying fines and have promised to “inspect bank records of any other active duty military families affected by the corporations’ illegal actions.” Not surprisingly, much of BofA’s troubles in this settlement stem from Countrywide violations. BofA acquired Countrywide in late 2008.
Do you think this settlement will benefit military members or is it too little too late?
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[1]http://www.dsnews.com/articles/justice-department-settles-with-servicers-over-wrongful-military-foreclosures-2011-05-31
[2]http://newslincolncounty.com/?p=25245
I think that it is about time for banks to be made accountable for all their illegal practices. The fines to me against BofA and Saxon is too minimal. I believe that if serious fines were placed on them, that will initiate a more responsible and considerate strategy that will put people first before profit.
ON JAN 1ST 2009 MY SISTER DENZIE THOMPSON DIED AT THE BRIDGEPORT HOSPITAL SHE LEFT BEHIND A HOUSE AT 62 SHANLEY STREET STRATFORD CONNECTICUT SHE DID NOT MAKE A WILL SO I HER BROTHER ACQUIRE A PROBATE COURT TO LOOK AFTER HER PROPERTY SEVERAL TIMES I TREID TO TALK WITH COUNTRY WIDE BANK SEND THEM SEVERAL PAPER WORK FOR THE MORTGAGE BUT AFTER A YEAR I WAS TOLD THAT BANK OF AMERICA HAVE THE MORTGAGE AND I SHOULD TALK WITH THEM I HAVE TRIED AND TRIED AND TRIED WITH NO AVAIL THE ONLY THING THAT BANK OF AMERICA WANT TO DO IS TO PUT THE HOUSE IN FORECLOSURE I WANT TO HAVE MY NAME ON THE MORTGAGE SO THAT I COULD EITHER LIVE IN THE PROPERTY OR RENT IT OUT BANK OF AMERICA ONLY THING IS TO TAKE THE HOUSE AND THERE IS SOMEONE WHO IS WILLING AND ABLE TO PAY FOR THE HOUSE SINCE 2006 WHEN MY MOTHER DIED I HAVE LOST TWO SISTERS ONE BROTHER ONE NEPHEW FOUR COUSINS TWO UNCLES AND ONE AUNT SO I WOULD REALLY WOULD LIKE TO TAKE OUT A REVERSE MORTGAGE ON THE PROPERTY AND CONTINUE TO LIVE IN IT BECAUSE THE WAY HOW BANK OF AMERICA TREATED THE SITUATION I HAVE CLOSED IT AND LEAVE IT THERE.
Far too little, far too late! The banks have run rough shod over the American public and this is just another example. They have been bailed out by the people and then refused to make reasonable arrangements for people to keep their homes. They are rewarded by the Federal Government to “take what they can - give nothing back”. Sounds like a line from a Pirate movie??? Yet pirates were hung for their actions. I’ve been through many negotiations with Banks, all the same result - foreclosure. So bravo for the veterans, at least someone is seeing some justice!
If you pay your bills you won’t have to worry about foreclosure. Once again, blame the banks. I am a former Countrywide employee who now works for Bank of America and I see it time and time again. We modify a loan and the customer makes 3 or 4 payments, if that, then default again. We modify the loan again and it still happens. We will only allow 3 modifications for the life of the loan. Why should banks be punished for taking homes away from those who cannot afford them in the first place? Pay your bills and stop blaming the banks.