Despite law, banks foreclose on soldiers

[Rose Siding]

(Wa Times title should read "banks try to foreclose")

When Army Reservist Steve Welter was called up for active duty in Iraq last August, his wife never thought she would face her own fight to save the family's home from foreclosure.
...
Keira Welter knew the law was supposed to protect a soldier's property from creditors during active military service. But for months, she said, Wells Fargo Home Mortgage Co. did not seem to care about the law, no matter how many times she explained her case.

"We had worked so hard to own our own home, and while my husband was over there serving our country it was going to be taken away," said Mrs. Welter, 31, of Osawatomie, Kan.
...
Lt. Col. Bruce Woolpert, a legal adviser to the Kansas National Guard in Topeka, said he fields desperate calls every week from soldiers and their families trying to understand their rights.

"We had a foreclosure that was actually going to occur the next day," Col. Woolpert said. "It was going to happen until we could generate the letters and get them to the company and say, 'Please stop this, it's not a valid foreclosure.' Wisdom prevailed and it was stopped."

http://www.washtimes.com/national/20050327-120417-5167r.htm

It must be very confusing for the banking industry to hear the word 'no' from Sen Roberts-R.

[colonel odis]

1. the worst part is, this doesn't surprise me one bit. n/t

[Bob3]

2. Bet lot's of folks at the mortgage company

have those support the troops magnets on their cars.

Snort.

[MikeG]

3. I've already kept one from losing his home.

[scarletlib]

5. thanks for really supporting the troops

[Toots]

4. Makes one want to go right out and join the Guard

IMHO there are just no words to describe how evil these people truly are.

[Occulus]

6. There are pictures, though.

I give you "A Banker's Heart".



edit: I have no idea who these people are or why they are there, but this sculpture is what sits outside of a large bank's HQ. I don't remember which bank, either, but it's bloody well appropriate, don't ya think?

[kskold]

8. Banker's Heart - St. Stupid's Day Parade

I *believe* that the "Banker's Heart" (unofficial name, mind you) outside the former Bank of America headquarters in San Francisco. In which case the photo is of the St. Stupid's Day Parade, April 1st, sponsored by "The First Church of the Last Laugh." (As far as I know, this is it's only holiday and event.)

They walk a parade route through the financial district checking the lugnuts that hold the landfill to solid ground, holding a specific sock exchange on the steps of the Pacific Stock Exchange, and throwing pennies at the Banker's Heart. I've only been on one parade, and it's been 10 years or more. Lots of silliness, lots of fun.

If you're in the San Francisco Bay Area, the next parade is next Friday - details (such as they are) at http://www.saintstupid.com/

Kristen

[madrchsod]

7. wells fargo

the worst mortgage lender in the usa. they have been fined millions for deceptive practices. in my area they have more forclosuers than any other lending instition...need i say it? yes-loan sharks.

[oscar111]

9. COMPLAIN: complaint site, consumers post complnts: MY3CENTS

google my3cents

not sure if it is .com or .org

consumers post complants or compliments

software glitchy, u can post via email to the admin.

login page kept re appearing after i logged in. Had to try to post via email admin.

havent seen wells fargo there, IIRC, but have heard of it elsewhere

[oscar111]

10. Sears: wasnt sears nailed for dunning after bankruptcies?

bankrupt is supposed to stop dunning.

i seem to recall sears kept dunning and in cases, collected from the poor folks.

my memory right?

[jmowreader]

11. Your memory's absolutely correct

No link, sorry, but Sears (one of the more predatory lenders out there) has been known to come in after Chapter 7 and try to "set up a payment plan" to "pay off the debtor's account."

Nevermind the fact that the intent of Chapter 7 is to get rid of the debtor's account.

However, this is different. Wells Fargo is violating the terms of the Soldiers and Sailors Civil Relief Act (which is also known as the Servicemembers Civil Relief Act) by foreclosing on the mortgages of deployed troops.

[Polemicist]

16. They may not be violating the Act...

As a mortgage person and a Banker from days gone by, I have dealt with the Sailors and Soldiers Relief Act. It is a law from World War II, that specifies what a creditor can do to a debtor that has been called to active duty.

A few specifics. Entitlement under the act isn't automatic. The debtor must request protection from the creditor under the act. If the debtor doesn't know to do so, in writing, then they do not have any protection under the act. I always told servicemen's families what to do, but a less ethical collector might just let them get in trouble due to a creditor's lack of knowledge.

Secondly, payments aren't placed in total abeyance during the term of military service under the act. The loan is placed on an interest only basis, and interest adjusted to 6% (if the loan carries a higher rate than that) and the payments are converted to interest only, monthly, during this period.

Sometimes that's not much relief on a mortgage loan, where interest can be the majority of the payment in the earlier years of the loan. So a family must apply for relief on all accounts and reduce their monthly outgo on car and credit cards and apply that savings toward the mortgage that might not be reduced.

I could see how some will still lose their houses. It's not a great system and could be improved for servicemen.

I just read another post that the law was amended last year. I am unfamiliar with any changes. I dealt with the law before it was amended. But I doubt they changed the interest only monthly payment requirement, with the power the banks have. They would have pitched a fit if anyone tried to keep them from collecting interest and payments on their loans under any circumstances.

[Yosie]

17. Reply from a VietNam Era JAG Corps Veteran

As a retired lawyer and as a Judge Advocate Generals Corps veteran from an earlier conflict---

1. "The debtor must request protection from the creditor under the act. If the debtor doesn't know to do so, in writing, then they do not have any protection under the act. ... So a family must apply for relief on all accounts and reduce their monthly outgo on car and credit cards and apply that savings toward the mortgage that might not be reduced.

Good and correct points. Unfortunately, the DOD has quit calling on retired JAG Corps (Regular and Reserve and Guard) to help service members -- and it appears that the Reserve Centers will not do referrals.

I have attempted to register to do pro bono - no fee - free - legal aid. And the Reserve Centers have said that they will get back to me -- never do.

During Desert Storm - I did a lot of this work -- even walked through CHAMPUS-TRI CARE paper work with local health care providers.

2. In some states, before foreclosure sale - the foreclosing lender MUST make reasonable inquiry as to whether or not the home owner is on active duty and is entitled to protection under the Act, and must file an affidavit that "Reasonable Inquiry" has been made - and that the owner is not in military service -- and is not under the Act.

Failure to do so means that the lender can not sell a "Marketable Title" (or "Title Insurance Insurable Title" in some states), and has conveyed less then a "Fee Simple Absolute." This is Caveat Emptor, but is also a breach of the Lender's various contractual duties to the new buyer and to the foreclosed former owner.

3. The burden is on the service member to see his unit JAG - and get the claims for coverage filed with all lenders.

[UpInArms]

12. Summary: Law Helps Troops With Creditors

http://www.latimes.com/news/nationworld/politics/wire/sns-ap-soldier-assistance-summary-box,1,6485951.story?coll=sns-ap-politics-headlines&ctrack=1&cset=true

THE PROBLEM: Many members of the National Guard and the Reserves, and their families, are uncertain about their rights under a 65-year-old federal law that provides a range of protections from creditors for soldiers called to duty by the Pentagon.

THE LAW: The Servicemembers Civil Relief Act, which Congress expanded last year, offers protection from eviction or foreclosure; payment deferral for federal taxes; and a stay on civil proceedings, including divorce and bankruptcy.

THE MILITARY: Is quick to let families know about the law as part of the family support briefing that soldiers get before they are deployed.

[Yosie]

18. But they do not make JAG Corps people available to help them

"THE MILITARY: Is quick to let families know about the law as part of the family support briefing that soldiers get before they are deployed.

And most civilian lawyers through their arms up and scream "ARRRRRRRGH".

[BeHereNow]

13. Just think...if this is how they treat

people serving the country, what's in store
for the regular citizenry now that the credit
card companies are planning to increase
minimum monthly due payments?
People in this country are going to fall hard-
including the Bushbots who have ushered in this
fresh new hell.
Can't help but feel a morbid fascination about
what's in store for them along with the rest of us.
At least we KNEW it was coming- the Bushbots
have NO clue what their ignorance and arrogance
is about to cost them...
as in, EVERYTHING.
BHN

[Misunderestimator]

14. Hear that creaking? It's the bottom dropping out...

:hi:

[BeHereNow]

15. Ka-boom...

so are you now a resident of our fair state?
BHN

[Misunderestimator]

20. I will be next week about this time...

;)

[wellst0nev0ter]

19. .AMDT.16 For The Moral Bankruptcy Bill

AMENDMENT PURPOSE:
To protect servicemembers and veterans from means testing in bankruptcy, to disallow certain claims by lenders charging usurious interest rates to servicemembers, and to allow servicemembers to exempt property based on the law of the State of their premilitary residence.

Result: Amendment SA 16 not agreed to in Senate by Yea-Nay Vote. 38 - 58

Of course the Repuke flaghuggers voted unanimously against the amendment, but lets examine the DUMBOCRAT turncoats:

Baucus (D-MT)
Biden (D-DE)
Byrd (D-WV)
Carper (D-DE)
Johnson (D-SD)
Nelson (D-NE)

makes me wanna :puke:

[Deja Q]

21. Gee, Bidet's name shows up yet again.

"D", my aRse.