Banks Admit Wrongly Foreclosing on US Troops
At least 700 active-duty troops lost homes during crisis
By Rob Quinn, Newser Staff
Posted Mar 4, 2013 2:18 AM CST
More than 700 military members were wrongfully foreclosed on, far more than previous estimates stated.   (AP Photo/David J. Phillip/file)

(Newser) – America's biggest banks have admitted that they wrongfully foreclosed on the homes of at least 700 military personnel, in some cases evicting families while troops were serving in war zones, the New York Times reports. The wrongful foreclosures by banks including Citigroup and Wells Fargo surfaced as part of an investigation stemming from a settlement with federal authorities over foreclosure abuse during the housing crisis. Federal law requires banks to obtain court orders before foreclosing on active-duty troops.

“It’s absolutely devastating to be 7,000 miles from your home fighting for this country and get a message that your family is being evicted," says a retired Air Force lawyer who represents troops in foreclosure cases. "We have been sounding the alarms that the banks are illegally evicting the very men and women who are out there fighting for this country. This is a devastating confirmation of that." The big banks say the wrongful foreclosures are only a small fraction of the mortgages being reviewed and they plan to compensate those affected.

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Showing 3 of 82 comments
bewilderbeast
Mar 6, 2013 1:35 AM CST
You're only "OUR TROOPS" when you're quietly dying far away, or in a flag-draped coffin, or marching in formation. As soon as you open your mouth, you're not a "troop" you're a black or a hispanic guy or a poor guy or another of the abused masses. We USE you in our speeches, we don't actually SUPPORT you! Especially not with OUR money! And it's ALL OUR MONEY! Capiche? (signed: Banksters Union of America)
Daniel-from-TN
Mar 5, 2013 6:31 PM CST
Here's a simple solution: so simple it will never be used. Homes that have not been resold should be returned to the soldiers. If a home has already been resold then the soldier should AUTOMATICALLY qualify to purchase another home of equal value. As punitive punishment for the banks/mortgage companies, troops who are the victims of these improper foreclosures should get an interest free mortgage.
JoeNobody
Mar 4, 2013 2:00 PM CST
Okay Lawyers, here is your chance to redeem your undeserved, tarnished public image. Go after these banksters who do this kind of thing -- they are by far the scum of the earth-- identify the individuals responsible and make both them and their banks pay dearly. And make sure the victims of this kind of crap are made whole completely and without owing you anything. I guarantee you will become the best-loved segment of our society. Bottom line: Banks suck, and banksters suck even worse.