Military Advantage

Troops Could Cash In on Fed's Foreclosure Settlement

Our friends at SpouseBuzz are reporting that Obama’s recently announced settlement with the major mortgage banks includes several specific provisions for servicemembers and veterans.

The plan will require the federal government to review thousands of servicemember held mortgages for illegal foreclosures and charges. As a result, eligible veterans and servicemembers could see a sizeable payback from the mortgage companies.

Under the settlement certain mortgage companies must pay back at least $116,785 plus any home equity to military homeowners who lost their homes due to illegal foreclosure procedures. In addition, servicemembers who were charged more than 6 percent interest rate (the highest rate allowed under the Servicemembers Civil Relief Act) will be eligible to receive four times what they overpaid in interest.

Answer these simple questions to determine if you qualify for a refund:

  1. Was your mortgage through Wells Fargo, Citigroup or Ally Financial (the companies included in the settlement)?
  2. Was your home foreclosed upon since 2006?
  3. Were you or are you currently being charged an interest rate on your mortgage above 6 percent (while on active duty)?
If your answer to any of these questions is “yes,” there is a possibility that you are eligible for the pay out. While the White House said servicemembers don’t have to apply to be able to receive the money or have their information reviewed, you can call and ask for help investigating whether or not you qualify. (Call 800-896-7743)

Read the full SpouseBuzz article to learn more.

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