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Millions owed to families in foreclosure deal

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By Patricia Kime - Staff writer
Posted : Friday Feb 10, 2012 15:22:24 EST

The $25 billion nationwide foreclosure settlement announced Thursday by the Justice Department includes compensation for service members who have lost their homes to illegal foreclosures since 2006.

It also contains provisions designed to protect military homeowners from future foreclosure or financial loss related to their military duties or orders.

In a release Thursday, Justice said financial institutions JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial — formerly GMAC — will review their foreclosures to determine whether any since Jan. 1, 2006 violated the Servicemembers Civil Relief Act.

If any are found, the lenders must pay service members $116,785 each, in addition to any lost equity and interest.

Under a separate agreement, those who held mortgages with JP Morgan Chase will receive their home free and clear of any debt, or the cash equivalent of the full value of the home at the time of sale.

Eligible service members also could receive compensation for harm suffered, according to the release.

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