TAMPA - While they are fighting for our nation overseas, some military personnel are losing their houses to foreclosure here at home.
In the thick of battle, in the heat of the fight, it's the last thing a GI should have to worry about. While Coast Guardsman Keith Johnson was fighting for our country overseas, he was losing a battle here at home, for his home.
A battle, he claims, he had no idea was being waged until the moment he got back and spoke to his wife.
"It just boggled my mind. I got back and she said 'the house is basically foreclosed' and I was like 'What do you mean?'" Johnson says.
At the same time, Johnson and his wife Alysia were negotiating with their lender, Wells Fargo, to modify the mortgage on their Clearwater home, the bank's lawyers were foreclosing on the property, getting a summary judgment, and auctioning it off.
That happens fairly often. Banks negotiate loan modifications at the same time they move to foreclose. The difference here is that Johnson says no one ever informed him the bank was foreclosing.
If that's true, it would be an apparent violation of a federal law specifically designed to protect active duty military personnel.
The Servicemember Civil Relief Act requires active duty soldiers be informed of civil actions like foreclosure, and allows them to delay the process until they are home to defend themselves.
Attorney John Odom is a nationally known expert on the act, and says it also protects soldiers against default judgments because, "Active duty personnel are not free to come and go as they might need to defend themselves," Odom tells us.
The I-Team has uncovered case after case in the Tampa area, around Florida, and the nation where banks have foreclosed on the homes of active duty military personnel.
In Johnson's case, Tampa Attorney Jay Passer was appointed by the court to track him down and protect his rights. He said he went to neither their home nor the base to find Johnson.
If Passer had only contacted Johnson’s unit at Air Station Clearwater or used the Coast Guard's world-wide personnel locator, Johnson said, "my command would have informed me immediately -- immediately."
Instead, Passer sent a letter to the Pentagon. He never received an answer from them. "It was not known to me. It was never explained to me, and I never received a response to any of that," Passer said.
With no defenses to the foreclosure filed on his behalf, Wells Fargo obtained a summary judgment and auctioned off Johnson's home.
The bank tells the I-TEAM, "We did everything we could in this case, but there were obligations the homeowner was unable to meet. We followed the service member act by requesting an attorney ad litem and we were acting on the validity of the court document filed by his court appointed attorney."
"He is never contacted by anyone about the foreclosure procedures being filed. And he comes home and he has no home. Now that's wrong. Somebody didn't do their job, because the law says that shouldn't not have happened,"Attorney John Odom said.
Johnson and his new attorney are now petitioning the court to undo the foreclosure. "We're going to get in front of a judge and I believe the judge is going to undo this sale," says Johnson's attorney Matt Weidner.
“They really need to get themselves under control," said Johnson, referring to the banks.
"They are really just bullying because they can."
Other lenders like JP Morgan Chase have settled lawsuits over accusations of improperly foreclosing on members of the military and the Justice Department is now investigating other lenders for doing the same thing.
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Wells Fargo response:
Wells Fargo takes our responsibility to comply with the Servicemembers Civil Relief Act (SCRA) very seriously . We work hard to make banking easier for our servicemen and servicewomen — around the world. For example, we have 11 military base locations across the country, allowing our military customers to have convenient access to banking services, including dedicated a website and phone lines.
We did everything we could in this case but there were obligations the homeowner was unable to meet. We followed the service member act by requesting an attorney ad litem, and we were acting on the validity of the court document filed by his court-appointed attorney.
Wells Fargo exhausted all efforts to resolve this matter. We made numerous attempts to resolve the case and facilitate a modification, short sale, refinance or payoff. We do our best to avoid foreclosure whenever possible, however, in some case we are unable to reach a mutually agreeable resolution.
Vickee J. Adams
Vice President, Mortgage Communications
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Editor’s Note: After the news report was broadcast and published, Wells Fargo contacted us and says it informed Keith Johnson and his wife of the foreclosure during numerous phone calls. And an affidavit filed by Wells Fargo in court says the bank – through a search firm -- made four attempts to locate Keith Johnson without
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