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Class Action Filed Against CitiMortgage For Illegal Foreclosure On Thousands of Military Homeowners

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Lead plaintiff Sgt. Jorge Rodriguez has filed a class action lawsuit against CitiMortgage for violating the Servicemembers Civil Relief Act (SCRA) by foreclosing on the homes of thousands of active duty military men and women.

In the lawsuit, Rodriguez said CitiMortgage foreclosed sold his home in 2006, while he “was ordered to active duty in support of Operation Iraqi Freedom on January 6, 2006…His period of active military service began February 1, 2006. On February 4, 2006, he was ordered to Fort Hood…. While Sergeant Rodriguez was on lock down training at Fort Hood, CitiMortgage initiated foreclosure proceedings against his property and sold it at a foreclosure sale on May 2, 2006. The foreclosure sale was not conducted pursuant to a court order and was not approved by a court. That same day, CitiMortgage’s lawyers filed an affidavit in the real property records of Travis County, Texas, stating that Sergeant Rodriguez was ‘not on active duty with any branch of the Armed Forces of the United States or w[as] not protected by the Servicemembers Civil Relief Act.’ Those statements were false.”

SCRA protects active service persons “by providing for the ‘temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service.'” The lawsuit continues,  “Specifically, lenders may not foreclose on a covered servicemember’s mortgage while he or she is on active duty, or within a specified grace period thereafter, without court approval. Any such prohibited foreclosure, sale or seizure of property is invalid under the SCRA,” The grace period is currently 9 months.

The lawsuit seeks “compensatory and punitive damages for unlawful foreclosure of service members’ property and an order restoring possession of the properties foreclosed in violation of the SCRA,” reports Courthouse News.

breakinglawsuitnews.com disclaimer: This article: Class Action Filed Against CitiMortgage For Illegal Foreclosure On Thousands of Military Homeowners was posted on Tuesday, July 12th, 2011 at 6:26 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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