A plan announced by the Obama administration today will require the federal government to review thousands of servicemember held mortgages for illegal foreclosures and charges – and if yours is one of them you could see a sizeable payback from the mortgage companies.
The plan is part of a $26 billion settlement with several mortgage companies that looks, in part, to pay back troops whose homes were illegally foreclosed upon since 2006 or who were charged interest on their mortgages over 6 percent.
The settlement holds the companies accountable for violating the Servicemembers Civil Relief Act which, among other things, bars companies from foreclosing on a servicemember’s home without a court order.
Under the settlement the companies must provide military mortgage relief and pay back to foreclosed upon military homeowners at least $116,785 plus any home equity that would have accrued since the foreclosure. Those who were charged over the 6 percent interest rate allowed in the Servicemembers Civil Relief Act will be eligible to receive four times what they overpaid in interest.
According to this story, that means that a return of about $9,000 for a family who didn’t lose their house but did pay an improper 7 percent rate on $200,000 mortgage.
The settlement and Obama plan could mean great things – and huge financial relief – to families who have suffered under mortgage problems since 2006. While military families tend to shy away from special treatment, the settlement and payout rules announced today by the White House simply hold these companies accountable for taking advantage of those who are focused on serving and can’t spend all of their time babysitting their bank.
So, how do you know if you are eligible for this payout? Answer these simple questions:
- Was your mortgage through Wells Fargo, Citigroup or Ally Financial (the companies included in the settlement)?
- Was your home foreclosed upon since 2006?
- Were you or are you currently being charged an interest rate on your mortgage above 6 percent?
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.
To reach more information or to see if you are eligible call: 800-896-7743
