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Investigation: Did active-duty members of the military face illegal foreclosure?
Posted: 12.05.2011 at 7:16 AM
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WATERTOWN (AP) -- State Attorney General Eric Schneiderman is investigating whether lenders illegally foreclosed on the homes of active-duty members of the military.

The state investigation into 10 lenders comes after a federal regulator's report said it would review 4,500 foreclosures on mortgages belonging to soldiers.

Officials in Schneiderman's office told the Watertown Daily Times that the state investigation will look in part at whether personnel from the 10th Mountain Division at Fort Drum in northern New York were affected. 

A 2003 law sets strict standards on foreclosures for active-duty soldiers, who cannot always show up for civil court hearings because of deployments.

Earlier this year, JPMorgan Chase and Bank of America reached settlements with hundreds of soldiers whose mortgages were foreclosed illegally. The banks apologized for the errors.

(Copyright ©2011 by The Associated Press. All Rights Reserved.)

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