SEATTLE -- The U.S. Department of Justice on Thursday announced a settlement with a Bellevue-based company after allegations it foreclosed on servicemembers' homes without obtaining required court orders.
The complaint filed last year alleged that Northwest Trustee Services, Inc. violated the Servicemembers Civil Relief Act.
According to the Justice Department, servicemembers who had their homes illegally closed upon may receive compensation of $125,000, up to $750,000 in total.
“Those who serve in our military deserve zealous representation of their rights,” said U.S. Attorney Annette L. Hayes. “We are working to ensure that servicemembers whose homes were illegally foreclosed on by Northwest Trustee receive up to $125,000 in compensation. Northwest Trustee may have shuttered its foreclosure business, but that does not end its obligation to do right by servicemembers.”
The company ceased operations in December of 2017 and is now being liquidated, officials said.
“The Civil Rights Division will never waver in our commitment to vindicating the rights of those who devote themselves to the service of our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We hope this case sends a strong message to foreclosure trustee companies and others that all foreclosures must comply with the Servicemembers Civil Relief Act.”
A news released from the Justice Department details what launched the investigation: