Wrongful Bank Foreclosures Lawsuits. JP Morgan Chase has wrongfully foreclosed on active duty members of the U.S. Military. The bank has also admitted to overcharging thousands of military families on their mortgages. Both of these acts are in violation of the Servicemembers Civil Relief Act (SCRA), which is designed to protect troops and their families from financial stress while they’re in harm’s way.
If you are a member of the military, and a victim of a JP Morgan Chase wrongful foreclosure or overcharge, you may be entitled to compensation. Our wrongful foreclosure lawyers are offering free lawsuit evaluations to current and former military members who believe shoddy mortgage servicing by a lender resulted in a violation of their rights under the SCRA. We urge you to contact one of our wrongful foreclosure lawyers today to protect your legal rights.
JP Morgan Chase Military Foreclosures
The JP Morgan military mortgage fiasco only came to light due to a lawsuit filed by Marine Capt. Jonathan Rowles, and his wife, Julie. Capt. Rowles, a Marine for five years and the pilot of an F/A 18 Delta fighter jet, told NBC New that when he went on active duty in 2006, interest on his adjustable rate mortgage – which was rising – should have been lowered to 6 percent. But JP Morgan Chase took months to lower the rate, and was overcharging the Rowles by as much as $900 per month.
The bank finally got it right in the fall of 2006 – or so the Rowles thought. Two years ago, JP Morgan Chase began hitting them with collection calls, as many as three a day, claiming they owed as much as $15,000, they told NBC. The callers sometimes threatened to take the house and report the family to a credit agency, even though the Rowles didn’t owe the bank anything, and hadn’t ever missed a house payment.
Even JP Mortgage admits the Rowles family did everything they should have to meet their obligations under their mortgage. What’s more, the bank has admitted that that some 4,000 troops may have been overcharged in the same way. Even worse, the bank says it wrongfully foreclosed on at least 14 military families.
The Servicemembers Civil Relief Act (SCRA)
It is vital that active duty military members know their rights under the SCRA. The SCRA was first passed in the 1940s to protect troops and their families from financial stress while they’re in harm’s way. It provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers.
A few examples of such obligations servicemembers may be protected against are:
- Outstanding credit card debt
- Mortgage payments
- Pending trials
- Terminations of lease.
The SCRA protects servicemembers against foreclosures of mortgages, as long as the following facts are established:
- The relief is sought on an obligation secured by a mortgage, trust deed; or other security in the nature of a mortgage on either real or personal property;
- The obligation originated prior to entry on active duty;
- The property was owned by the servicemember or family member prior to entry on active duty;
- The property is still owned by the servicemember or family member at the time relief is sought.
- The ability to meet the financial obligation is materially affected by the servicemember’s active duty obligation.