Military service members and their families, who may have lost their homes in unfair foreclosure practices, could receive a minimum of $116,785, plus lost equity and interest. This is a great win for these families.

The lenders have agreed to make up the losses and identify the service members who may have lost their homes or were denied interest rate reductions. The lenders were in violation of a law that protects active duty and deploying troops from credit card or mortgage abuses. The lenders include JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, formerly GMAC.

Through the comprehensive settlement of mortgage litigation, Wells Fargo, Citigroup and Ally will be required to provide any service member who was a victim of wrongful foreclosure, a minimum of $116,785, plus equity and interest. JPMorgan Chase, which has compensated some service members from an earlier private settlement, will provide victims with their home free and clear of debt or a cash equivalent of the full value at the time of the sale. In addition, service members will receive compensation for any additional harm they may have suffered.

According to Tom Perez, assistant attorney general for the Justice Department's civil rights division, "the law postpones, suspends, terminates or reduces the amount of certain consumer debt obligations so that members of the armed forces can focus their full attention on their military responsibilities without adverse consequences for themselves or their families. It allows our service members to focus on the critical role they play in protecting our nation."

This settlement expands the protection for deployed troops whether they took out a mortgage before or after enlisting, and provides relief to the military families whose homes are worth less than what they paid for, when they need to relocate for new assignments.

If you are in a situation where you are facing foreclosure, you should seek the advice of an attorney that specializes in foreclosures. They can review your situation and give you suggestions and options that will fit your particular situation.

Source: The New York Times, "Mortgage Relief for Service Members," John H. Cushman Jr., Feb. 12, 2012