Members of the armed forces who were wrongfully foreclosed on in recent years may receive a significant cut of the compensation agreed upon by the country's largest mortgage lenders.
According to HousingWire, the Servicemembers Civil Relief Act will be combined with the estimated $25 billion settlement, which could give some military personal up to six-figures in compensation.
Under the SCRA, military personal are legal granted certain terms of relief. However, these requirements were overlooked by a number of the lenders.
"From our first conversations, these servicers made it clear that they shared our goal of ensuring that any servicemember harmed as a result of a violation of the SCRA will receive full compensation," said U.S. Assistant Attorney General Thomas Perez. "With these agreements we will assure that will happen."
Some lenders agreed to return properties to military families or give them the cash equivalent if the homes were already sold as real estate-owned properties. In addition, the debts of the servicemember households would be cleared, while receiving a significant cash payout.
Meanwhile, other lenders noted that they would established foreclosure prevention and counselling programs in coordination with a panel of military veterans who were familiar with the real estate industry and the process foreclosed houses go through.