Steadfast FinancesSoldiers Returning Home to Foreclosure

Soldiers Returning Home to Foreclosure

Filed in Real Estate 3 comments

How’s this for the ultimate sad country song:

  • Go to war.
  • Bank forecloses on your home.
  • Bank sells it to someone else.
  • Wife leaves you.
  • Lose your kids.
  • Can’t get a job.
  • Find out you’re disabled.


Classy move right?

More from the NYT article:

Typically, banks respond quickly to public reports of errors affecting military families. But today, more than six years after the illegal foreclosure, Deutsche Bank Trust Company and its primary co-defendant, a Morgan Stanley subsidiary called Saxon Mortgage Services, are still in court disputing whether Sergeant Hurley is owed significant damages. Exhibits show that at least 100 other military mortgages are being serviced for Deutsche Bank, but it is not clear whether other service members have been affected by the policy that resulted in the Hurley foreclosure.

Under the law, only a judge can authorize a foreclosure on a protected service member’s home, even in states where court orders are not required for civilian foreclosures, and the judge can act only after a hearing where the military homeowner is represented. The law also caps a protected service member’s mortgage rate at 6 percent.

By 2005, violations of the civil relief act were being reported all across the country, some involving prominent banks like Wells Fargo and Citigroup. Publicity about the violations spared some military families from foreclosure, prompted both banks to promise better compliance and put lenders on notice that service members were entitled to special relief.

And the financial industry wonders why it has a “trust deficit” problem? It’s a pity that doing the right thing — and in this case, the law — is practiced only after the media spotlight is focused on the wrongdoers.

Typically, banks respond quickly to public reports of errors affecting military families. But today, more than six years after the illegal foreclosure, Deutsche Bank Trust Company and its primary co-defendant, a Morgan Stanley subsidiary called Saxon Mortgage Services, are still in court disputing whether Sergeant Hurley is owed significant damages. Exhibits show that at least 100 other military mortgages are being serviced for Deutsche Bank, but it is not clear whether other service members have been affected by the policy that resulted in the Hurley foreclosure.
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Posted by CJ   @   27 January 2011 3 comments
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3 Comments

Comments
Jan 28, 2011
12:32 am
#1 Dan B. :

As fae as I’m concerned banks/bankers who break the rules should have their nuts nailed to the wall……..

However, before we get too misty eyed & feel the unsurmountable urge to buy every soldier a beer, let’s remember that we have a 100% volunteer military that is the highest paid in the history of history. Furthermore, up until last year, one didn’t even need a high school diploma to enlist. And let’s face it, there are a few other careers that put similar strains on wife & kids.

Jan 29, 2011
11:54 pm
#2 USmil :

Dan B.
I just returned form 1 year in Iraq. There is a reason the military is called “the service”. Enlighten me on other careers that are as strenuous on family, aside from the ludicrous contracting jobs in the AOR (Area of Operations) making 2-3 times (MINIMUM)of their military counterparts–and many of them go home 4 times a year versus one 15 day R&R for the military. I know one soldier that has seen his daughter one year out of four. Many are on their 4-5th tour of duty to the desert. Never in the history of the US have the same group of soldiers been deployed for so many times.

Jan 30, 2011
4:26 pm
#3 Dan B. :

What about your counterparts in the Navy & Air Force? Would you characterize their deployments to be as stressful? I know a couple of airmen who were deployed during Iraqi Freedom who never saw or heard a shot………. & came back in short order. We play the cards we’re dealt. Life isn’t necessarily fair.

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