Man, where to start on this one. Customer gets approved for a temporary loan mod and pays for over a year only to find out that Chase had rejected a permanent mod and was about to foreclose. They never contacted him to inform him of any of this. Same customer deposits a check and Chase reads the amount wrong and as a result the customer gets several NSF charges. He asks them to correct this so they … close his account? Yea, that sounds like Chase. (story)
This is bad. Chase has been accused in New York of some pretty foul and possibly fraudulent behavior around foreclosures. One example has Chase rejecting payments to bring a mortgage current, so they could foreclose instead.
This is a new one. Chase actually foreclosed on a homeowner who was actively enrolled in a trial modification. Worse yet, the house was sold (back to Chase?) for $100. (story)
Here’s a troubling story: A couple paid off their mortgage in 2001, but a company that Chase uses to service loans filed foreclosure proceedings, the couple never received notice, and the house was sold at a foreclosure auction. Chase was apparently completely unaware that this was going on. (court opinion)
Read all about Chase’s parallel foreclosure operations, where they start foreclosure proceedings in parallel with trying to modify loans with homeowners. I’m all for people being responsible for commitments they make, but I also think Chase should be UP FRONT about what it is doing.
After making all 8 loan modification payments on time or early, one Chase mortgage customer was accidentally (according to Chase) dropped from the program and received a foreclosure letter. (story) Does Chase really have any intention of making any of their trial modifications permanent?
According to this WSJ article, very few of the 650,000 trial loan modifications issued by banks have been made permanent. It is expected that only 25% to 35% of trial loan modifications will be made permanent. Are trial loan modifications just a way to get more money out of homeowners before foreclosure? It sure looks that way.
Chase’s statements about its foreclosure dissected.
Fees & charges, Foreclosure, Loan modification | admin March 11, 2010 | 
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