On September 27, 2018, the Department of Justice (“DOJ”) announced that it had reached a settlement with a Washington-based foreclosure services company, resolving allegations that the company violated the Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901-4043 (“SCRA”) when foreclosing on certain servicemembers’ home. The SCRA protects servicemembers on active duty from having their homes foreclosed upon without a court order.
Under the terms of the settlement, each servicemember who had their home foreclosed upon allegedly in violation of the statute is eligible to receive up to $125,000. In total, the company may pay up to $750,000 in compensation to servicemembers.
This was the DOJ’s first SCRA lawsuit against a foreclosure trustee company.