On 6thMarch 2012, President Obama outlined his plans to reduce mortgage costs for veterans and other service members. In his Presidential address, he said – “It is unconscionable that members of the armed forces and their families have been some of the most susceptible to losing their homes due to the actions of unscrupulous banks and mortgage lenders. But over the last years that happened.”
The white House disclosed further details of the new program that includes approximately $26 million in settlement amount announced last month, and agreed upon by the government and major lenders.
As per the plan:
– Federal officers will review mortgage loans issued since the year 2006 for any discrepancies.
– Troops or families victimized by illegal foreclosure would receive a minimum of $116,000, plus thousands more in punitive payments from the banks.
– Service members charged excess interest above 6%, in violation of federal protection of service members, will be eligible for four times in excess of what they overpaid (around $9000 for a mortgage of $200,000).
– A sum of $10 million will be sanctioned towards the Veteran Housing Benefit Program Fund.
Military homeowners will not have to apply to be eligible for the payouts or new programs. Federal officials have said they will review military and mortgage records to search for discrepancies in the numbers, and contact affected troops. However, troops who believe they may be eligible can call 800-896-7743 for more information.
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