The DOJ announced Friday that it is suing Northwest Trustee Services for violating the Servicemembers Civil Relief Act, which prohibits lenders and mortgage servicers from foreclosing on a servicemember’s home while they are on active military service and for the next year without a court order, if the mortgage was originated before the servicemember’s military service.
According to the DOJ, in the last six years, Northwest foreclosed on at least 28 homes owned by servicemembers without the necessary court orders.
The lawsuit comes after the DOJ launched an investigation into Northwest’s foreclosure practices at the urging of United States Marine veteran Jacob McGreevey of Vancouver, Washington, who submitted a complaint to the DOJ’s Servicemembers and Veterans Initiative in May 2016.
Portland’s The Oregonian has been all over McGreevy’s story, previously chronicling his fight against Northwest and PHH Mortgage, his mortgage servicer, for foreclosing on his home shortly after he returned from active duty.
According to the DOJ, Northwest foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom.