Military members have long had special rules that help protect them and their families from certain harm as a benefit of being a service member. One example is the additional benefits and special mortgage loans that military members are eligible to receive. Now with foreclosures plaguing the nation, one state is looking into several claims regarding potentially unlawful foreclosures by banks on military members.
Servicemembers Civil Relief Act
The New York Attorney General’s Office has opened up investigations into several reports by active-duty military members. Part of a larger investigation, the New York Attorney General’s Office has had their eye on unscrupulous mortgage lending practices of many banks for a while now. The allegations that sparked further investigation stated that the mortgage lender wrongfully foreclosed on several active-duty service members without following proper procedure.
According to the Servicemembers Civil Relief Act, lenders must first obtain a court order to pursue foreclosures on any active-duty service member. Violating this rule by entering homes into foreclosure without the proper court order have Attorney General, Eric Schneidermann looking into how such operations proceeded without warning. Schneidermann is concerned with how state officials can better regulate the mortgage relief efforts and foreclosure processes of banks.