Bank Of America Will Pay $20 Million For Illegal Foreclosures On Active Duty Soldiers

First we hear about Bank of America wrongly foreclosing on someone's house where the owner's had paid cash for their house and had no mortgage and the owners went after B.O.A. by seizing their assets, etc.

Now Bank of America is in the news again today, as well as Morgan Stanley, and once again they will be paying for their screw ups:

Jun. 4, 2011, 7:34 AM


Two big banks will pay $22 million in monetary relief for illegally foreclosing on active-duty soldiers. Bank of America and Morgan Stanley foreclosed on 178 members of the military, in violation of the Servicemembers Civil Relief Act, according to the Department of Justice.

Bank of America will set aside $20 million to compensate the 160 servicemembers it wrongfully foreclosed upon. More money could go to additional soldiers who received the same treatment.

Morgan Stanley’s subsidiary, Saxon Mortgage Services Inc., will pay $2.35 million for illegally foreclosing on another 18 soldiers.

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Can this bank do anything right?

B of A and many of the other big banks don't actually investigate their own foreclosure process. They just hand them out like they were candy at a birthday party.

B of A and pretty much all of the other big banks are corrupt to the core. It is a matter of policy to do things in the manner in which they do. Complying with the law is not part of that policy.

reply to post by projectvxn


I guess that belief (and practice) of the "too big to fail" position gives them a lot of
confidence to operate the way they do....

This is good news so far for people who have had homes foreclosed on them. My dad had his house sold under him by Chase after doing everything they asked. He never stopped paying until someone at the bank told him to not pay while he is waiting for the decision on his loan modification.

to add insult to injury a few months later he gets a letter from chase saying he was approved for the loan mod.

reply to post by elrey72011


Chase is guilty of wrongful foreclosures too if you read this article from earlier this year:

02/14/2011
An executive at JP Morgan Chase admitted to Congress Wednesday that the bank broke the law at least 4,500 times by foreclosing on active-duty soldiers and charging them too much interest.

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This should be the easiest regulation that banks follow. Why they refuse to abide by the rules (that have been there for a minute now) I just dont know.

Its as if they think soldiers don't have ENOUGH stuff on their plate. We arent (majority) wealthy, and sometimes when you're told to only worry about your rotation comin up, or your stuff that needs done, or you're overseas, or you're being sent to a school..... the ol mortgage shouldnt be messing with us too

with all that being said, if you're late on your mortgage, well.. you're responsible for it.. if its been so late its in foreclosure, well.. again you're responsible for it. Communication is stressed in the Army at least, so we all should know better than to not communicate what's going on with the people who hold the ability to take away our home.

reply to post by jewston


Not to mention that a lot of soldiers married women who are there to collect soldier pay and sit on their butts.

I've known many. My brother's wife being one of them.

Don't take that as a knock on women. Men do it too. But to a lesser degree. Military folks are a boon to leeches. Thankfully my wife isn't like that. She is very frugal and I don't have to worry about all of my Army pay being spent on nothing.

that's the way they do business. they calculate things 20 steps in advance, and if they can turn a profit, they'll do it.

they may have paid out 22 million, but i'm sure they made well over that. and that's what insurance is for.

they don't pay millions in premiums to have them go to waste.

bottom line, they don't see people. they only see numbers. if they passed a law that executives and not corporations are personally liable, all this b.s. and crimes would stop.

at the end of the day, they all go back to their mansions and crack open a bottle of fine wine with their dinner.

More interesting info in the article below on the "four horsemen of banking":

The Federal Reserve Cartel: The Eight Families (Part 1)

June 3, 2011


The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP Amoco and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch.

According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.

So who then are the stockholders in these money center banks?

To read more go here:

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