Great News for Some Military Members Who Wrongfully Lost Their Homes

WASHINGTON — President Barack Obama is aiming mortgage relief at members of the military as well as homeowners with government-insured loans.  It’s the administration’s latest efforts to address a persistent housing crisis.  This is great news for some military members who wrongfully lost their homes.

 In his first full news conference of the year Tuesday, Obama announced plans to let borrowers with mortgages insured by the Federal Housing Administration refinance at lower rates.  It would be saving the average homeowner more than $1,000 a year. Obama also detailed an agreement with major lenders to compensate service members and veterans who were wrongfully foreclosed upon or denied lower interest rates.

For service members and veterans, Obama announced that major lenders will review foreclosures to determine whether they were done properly.

If wrongly foreclosed upon, service members and veterans would be paid their lost equity and also be entitled to an additional $116,785 in compensation. That was a figure reached through an agreement with major lenders by the federal government and 49 state attorneys general.

Under the agreement, the lenders also would compensate service members who lost value in their homes when they were forced to sell them due to a military reassignment.

-Associated Press

You can view the full press conference from 3-6-2012 here: