M&T Bank Foreclosing On Active Duty Servicemember In Apparent Disregard Of Federal Law

A recent opinion column in The New York Daily News describes a Brooklyn, New York homeowner with 20 years of service in the Army Reserve who reportedly fell behind on her mortgage payments after she got called in for active duty. Five months after being discharged, she was twice called back. M&T Bank currently has a foreclosure action pending against her. An excerpt from the column:

• All told, Foy was home for less than 15 months from October 2001 to December 2006 and, during that time, she lost two tenants. So, lacking rental income, she fell behind on payments again. M&T didn't want to hear about it. The bank piled on penalties - nearly $23,000 in fees - and initiated foreclosure proceedings. Foy remains at risk of losing her home. That's not how it's supposed to work. State and federal law specify that members of the armed forces are entitled to relief from civilian debts - not forgiveness, but a bit of understanding - when they run into trouble because of their military service.

For more, see A lousy way to treat a veteran.

Go here for other posts on the Servicemembers Civil Relief Act, the Federal law that provides protection for active duty servicemembers with financial difficulties arising out of their active duty. If they haven't already, servicemembers in this position should contact the U.S. military's legal officer who is assigned to their unit for consultation.