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.
The gap between the service member's agreement and the much-publicized robo-signing settlement will surely be noticed. What's called the mortgage defense bar will point to the vet accord when seeking bigger damages in cases of alleged lender wrongdoing.
The Servicemembers Civil Relief Act, or SCRA, limits the interest rate that can be charged to service members and stops foreclosures without court approval.
Previously, Bank of America had agreed to pay $20 million to 157 servicemembers who allegedly were wrongfully foreclosed on between 2006 and mid-2009.
Claims under the new agreement can go back as far as Jan. 1, 2006. Service members who believe their rights were violated by a lender or servicer can contact the Justice Department directly at 1-800-896-7743.
A VA loan is a mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs. Here we look at how VA loans work and what most borrowers don’t know about the program.
VA loans allow Veterans to have a co-borrower on the loan. Here we break down co-borrower requirements and provide common scenarios around co-borrowing and joint VA loans.