Enforcement case record
Bank of America SCRA Foreclosures: $39 Million, $116,785 Minimum
- Defendant
- BAC Home Loans Servicing LP (Countrywide), a Bank of America subsidiary
- Year
- 2011 to 2013
- Scale
- 316 servicemembers
- Statute
- 50 U.S.C. § 3953
- Outcome
- $20 million settlement (May 2011), which the DOJ’s April 2013 update grew to over $36.8 million for 297 servicemembers as the 2009 to 2010 review concluded: a minimum of $116,785 per servicemember plus compensation for lost equity with interest.
What happened
Under 2011 settlements with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, and Saxon Mortgage Servicing Inc., a subsidiary of Morgan Stanley, 316 servicemembers whose homes were unlawfully foreclosed on between 2006 and 2010 became eligible for over $39 million in relief.
Bank of America was required to pay over $36.8 million to servicemembers foreclosed on in that window. It had already begun compensating 142 servicemembers foreclosed on between 2006 and the middle of 2009, then agreed to provide information about its foreclosures from mid-2009 through the end of 2010; that review identified a further group.
The law behind this: 50 U.S.C. § 3953
Mortgages and trust deeds: sale, foreclosure, or seizure of property: read the statute.
Who was covered
Servicemembers whose homes were foreclosed on between 2006 and 2010 by the covered servicers without the court order Section 3953 requires for a pre-service mortgage.
What the settlement paid
- Over $39 million across both settlements.
- Each servicemember received a minimum of $116,785, plus compensation for any lost equity with interest.
- Bank of America’s share was over $36.8 million; Saxon Mortgage Services established a separate fund.
Why this case matters
The highest per-person minimum in this ledger. A wrongful foreclosure is compensated an order of magnitude above a wrongful repossession, because the statute treats a home differently from a car.
If you think you were affected
Foreclosure compensation in these settlements is set per servicemember and runs to six figures, so it is worth establishing whether your dates fall inside a covered period.
This page is a record of a public enforcement action against BAC Home Loans Servicing LP. It is not a claim form, and this site cannot tell you whether you are in the covered group. These are the routes that can.
- Read the Justice Department’s own record: DOJ press release (April 4, 2013) . Settlement administration and any claim process are run from there, never from here.
- Start with the § 3953 court-order requirement on a military mortgage , which is the protection this case was brought under.
- Contact your nearest Armed Forces Legal Assistance office. It is free for servicemembers and dependents, and it is the right first call on any SCRA question about your own accounts. Our guide to SCRA legal help explains the options.
- Confirm your covered dates before you argue about them. The Defense Manpower Data Center issues a free military status certificate; our walkthrough shows how to pull one.
Current SCRA policy and contact details for this company: our BAC Home Loans Servicing LP SCRA guide .
Other foreclosure cases
Every figure on this page is transcribed from the Justice Department record linked above, including its own hedges. Nothing is estimated or rounded. The ledger was last checked in full on July 11, 2026.
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.