Banks Wrongfully Foreclosed on 700 Military Members

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Where to Sell Your Stuff for Top DollarAround The House

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

8 Tuition-Free U.S. CollegesCollege

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

21 Restaurants Offering Free Food Right NowSaving Money

20 Simple Hacks to Make Your Stuff Last LongerAround The House

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

12 Surprising Ways to Wreck Your Credit ScoreBorrow

10 Overlooked Expenses That Ruin Your BudgetFamily

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo were all involved. Some people were even wrongly evicted despite being current on payments and out of the country.

Earlier this week The New York Times reported that the banks have admitted to hundreds of mistaken foreclosures as part of an analysis required by the government in the $25 billion settlement made last year.

This is our first and possibly only look (the exact numbers will not be publicly released) into how bad the foreclosure crisis really was, and it’s not pretty.  More than a year has passed since the settlement was reached, and some of the unfair foreclosures date back as far as 2006. Nearly two dozen homes were wrongfully seized, the banks now admit.

Some of these cases were already known, such as that of Sgt. James B. Hurley, a disabled Iraq War vet whose Michigan home was sold two months before he came back to the country. His court battle dragged out over years. The NYT highlights other cases:

In 2011, JPMorgan settled claims that it inappropriately foreclosed on 18 military service members and overcharged 6,000. Bank of America and Morgan Stanley also struck a pact with the Justice Department to settle claims they foreclosed on 178 military members between 2006 and 2009.

But the analysis shows there were many more. JPMorgan, Wells Fargo and Bank of America each found about 200 additional foreclosure cases, and Citigroup found over 100. This, of course, was illegal – even if the paperwork had been legitimate.  The Servicemembers Civil Relief Act demands banks get court approval to foreclose on active-duty members. No word on whether any additional legal action will be taken.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 10 Best Places to Retire in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,864 more deals!