Consumer Finance Insights
November 16, 2017

DOJ Sues Foreclosure Trustee for Illegally Foreclosing on Homes of Servicemembers

On November 9, the Department of Justice (“DOJ”) annou​nced its lawsuit against a foreclosure trustee for wrongfully foreclosing on at least twenty-eight servicemembers in violation of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3953.

The SCRA prohibits foreclosure on the home of a servicemember during active military service and for twelve-months after service without a court order if the home mortgage originated prior to that period of service in the military.  The DOJ alleges the company foreclosed on servicemembers who were protected from foreclosure by the SCRA.

The DOJ seeks civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense, as well as injunctive relief to prevent future violations of the SCRA.