Morgan Stanley And Bank Of America To Pay $22 m For Wrongful Military Foreclosure

by San Antonio Attorney

Federal civil charges, seeking $22 million in damages, were filed against two mortgage firms due to an improper foreclosure on 178 military personnel, including some who were serving in wars.

According to the Justice Department, Morgan and Bank of America Corp subsidiaries did not get court orders prior to its implementation of foreclosures from 2006 to 2009. The charges against the firm will pay roughly $125,562 to every person. The homes were in 22 different states.

Some of those were houses of many service members who were injured or who developed post-traumatic stress disorder, according to officials. A particular incident involved a veteran of Iraq war who was getting post-traumatic counseling when his house was foreclosed.

The mortgage lenders agreed to give additional loans protections for the military employees under a settlement.

BAC Home Loans Servicing, a subsidiary of Bank of America, and Saxon Mortgage Services, a subsidiary of Morgan Stanley, further agreed to check on possible improper foreclosure cases between summer of 2009 and the year 2010.

The Servicemembers’ Civil Relied Act protects military employees from being evicted when they are still on active duty. Such law had been violated by the two lenders.

The Justice Department started its review after various concerns of Sgt. James Hurley and the U.S. Marine Corps over Saxon’s foreclosure in 2005 when he was serving in Iraq. This happened earlier this year and Hurley settled with Saxon.

In another case earlier this year, JPMorgan admitted that 4,000 military personnel were overcharged on mortgages and that 14 of them had been mistakenly foreclosed by the bank. The case was settled for $2 million and the foreclosures were reversed.

According to federal officials, they are finding ways to be able to provide better financial protections for the families of those who are in the military.

If you are military, live in San Antonio, and have a similar issue.  Than contact a San Antonio Attorney.

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