Under the just-announced $25 billion national mortgage settlement, members of the military are supposed to have additional protections to guard against wrongful foreclosures. It would seem that the new settlement would bolster the benefits already in place under the Servicemembers Civil Relief Act (SCRA) but that’s not entirely clear.
The issue is this: When must lenders halt foreclosures involving a member of the military who serves in a combat zone? Are copies of orders or a letter from your commanding officer to the loan servicer enough to demonstrate SCRA coverage?
Improperly foreclosed vets will get a minimum of $116,785 under a settlement between the Justice Department and the nation’s largest banks.
The settlement provides compensation that’s more than 50 times greater than the $2,000 provided to those who lost their homes to robo-signing under the just-announced $25 billion deal between major banks and most states.