Chase loan mod process still screwy, unchanged
Many times over the last year lawmakers and attorneys general, and even the White House have talked about how screwed up and unsuccessful the loan modification process has been, but that doesn’t seem to have changed Chase’s convoluted approach, if this story is any indication.
I have been experiencing all of the same frustrating experiences as many of your bloggers for the past 18 months. The long and the short of it is that, after over a year of providing multiple packets of requested documentation (at least 10 different times because either they never received what I sent, or because it took them so long to finally look at what I sent them that they needed updated docs, only to repeat the same delays and request for updated docs again), and while making agreed to reduced payments under a forbearance agreement, on July 16, 2010, I finally received a verbal approval over the telephone of a modification, approved on July 14, 2010.. ( I have the names of the 2 individuals I received this info from, and their phone numbers and extensions. Its my guess however that either they no longer work for chase and/or most likely their numbers and extensions have changed many times since then). I was told the exact terms of the modification and when the new payments would begin (Sept 1, 2010). I was told I would receive the packet in 7-10 days. After many calls requesting the modification package during the next 30 days, I still had not received it. Yet I was told in every instance of calling inquiring about the where abouts of the packet, that my file shows that iI had been approved on July 14, 2010 and the docs were coming.
As a homebuilder in Dallas, my business at this point has been relegated to remodeling and my income significantly reduced. I had foreclosures last year, and resulting deficiencies against me for a couple of houses I had built and couldnt sell for what I owed. I was forced into bankruptcy before ever receiving the modification package (which I never did actually receive) and chase then pulled the modification. I re-affirmed my mortgage with chase and have communicated to them that I am still ready, willing and able to commence payments in accordance to the terms of the modification that I was approved for. I have since been contacted by an attorney for chase (initially, 3 months ago, out of Houston), inquiring of my intentions. I have told her the story and that I still was willing to go with the mod terms. She said she would get with chase and just get this mod done.. Nothing has been accomplished since. Most of my calls and emails to her have gone unanswered and when I have been able to reach her, her response has always been that she has not heard back from chase. So, for over 3 months, an attorneys client has not responded to their lawyer regarding resolving a legal matter.
Bad bad Chase, Ineptitude, Loan modification | admin December 24, 2010
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By Alessandro Machi, December 24, 2010 @ 5:07 pm
You are battling the perils of parallel foreclosure, also known as the bankster bait and switch. As long as the banksters continue to mistakenly believe they can foreclose before and during a home loan mod, they will continue to violate common sense, and possibly the Federal Hobbs act, and be subjected to class action lawsuits.
There are three different “players” that have an interest in parallel foreclosing on the homeowner, it’s the servicers first, the banksters second, and the investors third.
In my opinion, this above is all serious, but its nonsense.
Once a Change in Terms has occurred on the original mortgage note / agreement, the banksters, servicers and investors have violated the terms of the mortgage agreement.
It doesn’t matter if the original mortgage note states that the servicer, banker or investor, has the right to change terms, its still fraud, otherwise the terms could be changed to simply steal your house whenever they felt like it. ahem. In my opinion it can’t be a property rights mortgage contract if one side can unilaterally change the basic core content of the contract whenever they feel like it.
I believe there are several causes of action that homeowners may be able to gang together on as separate class action foreclosure lawsuits.
Potential class action lawsuits include…
1. Securitization that caused a change in terms without the expressed written consent of the homeowner at the time the securitization occurred.
2. Any change in terms from the original mortgage agreement can be grounds for a lawsuit as well. Reduced customer service hours, longer wait times. Longer time to cash a mortgage check, changing the penalty and fee rates, Changing how the customer gets caught up when in arrears, if any of these terms were changed without the expressed written consent of homeowner, they are grounds for suing.
3. Parallel Foreclosure in which a homeowner is subjected to foreclosure BEFORE the a homeowner can even apply for HAMP and DURING the HAMP process has already been frowned upon by the courts and the 50 attorneys generals has led to at least one class action lawsuit. http://parallelforeclosure.blogspot.com/2010/12/parallel-foreclosure-class-action.html
4. Predatory Loans. Any loan that requires a homeowner to make the same payment as another homeowner, but for twice as long a period time even though both borrowed the same amount of money, in my opinion is a predatory loan.
Simply defined, one homeowner makes a 1,000 dollar payment every month for 30 years, another homeowner makes the same monthly payment, but only for 15 years, on the same amount borrowed. The 30 year loan is a predatory, discriminatory loan because that homeowner is making the same amount of payments for double the length of time. That’s my definition, and one definition, of a predatory loan.
http://parallelforeclosure.blogspot.com/2010/12/robo-signing-is-just-tip-of-foreclosure.html
I’m not saying if homeowners won a class action lawsuit that they would win their homes outright, but it could soften the blow of what they have been through if they were to win.