This article is a must-read for anyone going through a loan modification with some useful tips. Among them are don’t take the banks word that you should stop paying your mortgage to qualify for a loan modification; only do so after you have in writing that if you stop payments you will not be foreclosed upon as a result. Attorney Melissa Huelsman, subject of the article strongly believes that JP Morgan Chase CEO Jamie Dimon would rather spend money fighting rather than working out solutions, and that Chase is the only large bank that will not consider principle reduction.
Update 4/13/10: This stance against principle reduction was reiterated in today’s testimony before congress. The bottom line, they don’t think customers deserve to have their principle reduced because they entered into a contract and should be held to it. What about all the fraudulent and abusive sub-prime loans?
Looks like the big banks, including Chase aren’t out of the water yet, no matter how much they may be tooting their own horns lately. According to this article in Business Week, BofA, Chase, and Wells Fargo combined may need to set aside an additional $30 billion in reserves to cover potential loses from home equity (HELOC) loans. We haven’t heard much about HELOC losses but in many cases the loan can get wiped out 100% from a short sale or foreclosure as the loans are secondary to the 1st mortgage.
At least one couple is standing up to Chase for their parallel foreclosure tactics. This is how it works: Chase tells you that in order to qualify for a loan modification you must be delinquent on your loan, so they advise you to stop paying it. Then, through a long drawn out loan modification process, they start foreclosure proceedings without telling you and eventually foreclose on your home. Whether they are doing this maliciously or just out of incompetence (left hand not talking to right hand) is anyone’s guess.
What a great idea. Send a letter to Chase every month asking them to prove that you owe them the money they claim you do on your mortgage, HELOC, or credit card. So many of these loans are sold and Chase just processes them, quite often banks have a hard time proving that they actually own the loan in court.
Oops, they did it again. Chase has once again told a homeowner to stop making payments so they will qualify for a loan modification and then foreclosed upon them while this was happening without telling them.
If you are being foreclosed upon, this article should be very interesting to you. It seems that major provider of documents that banks use in court to prove they own your loan is being investigated for providing inaccurate documents. Basically, it seems that with all the slicing and dicing of mortgages, banks may not actually be able to prove they own your loan and have the right to foreclose upon it. Several foreclosure actions have been dismissed because of this.
JP Morgan Chase may have recently reported that its credit card losses were improving, but it appears that their buy-backs of bogus mortgages is increasing at a rate that will far offset the credit card improvements.
This is classic Chase. Homeowner sells house, one year after the sale Chase is still treating her loan as if it was active and telling her she is behind on payments. Not until the media contacts Chase on her behalf does the problem get solved. (story)
Bad bad Chase, Foreclosure, Loan modification | admin April 12, 2010 | 
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