Tuesday, November 15, 2011

BofA To Cough Up $116K + Lost Equity To Each Servicemember/Borrower Who Lost Home To Unlawful Foreclosure Over Alleged SCRA Violations

From the U.S. Department of Justice:

  • The Justice Department announced [] that, as part of its settlement with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, servicemembers whose homes were unlawfully foreclosed upon will each receive a minimum $116,785 plus compensation for any equity lost to compensate them for the bank’s alleged violation of the Servicemember Civil Relief Act (SCRA).

  • Bank of America agreed to pay $20 million to approximately 160 servicemembers who were illegally foreclosed on between 2006 and the middle of 2009. Under the agreement, Bank of America agreed to provide information about its foreclosures from mid 2009-2010 and will pay damages in the same minimum amount to those servicemembers whose homes were illegally foreclosed upon to compensate for the loss of their homes. The review is on-going.

For the entire press release, see Department of Justice Announces Compensation for Servicemembers as Part of Settlement with Bank of America.

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