Chase sued for telling homeowners to stop making payments
Another lawsuit calling out Chase for bad behavior. This time related to the practice of telling homeowners to stop making mortgage payments so they will quality for a loan modification:
JPMorgan Chase instructed homeowners to stop making mortgage payments, as that was the only way to be considered for a loan modification, then repossessed their house when they followed the bank’s advice, a couple claims in Federal Court.
The process seems to go like this:
1. Chase recommends stopping payments to qualify for a loan modification
2. Chase approves a trial modification.
3. Chase works in parallel on foreclosure actions
4. Chase denies permanent modification after an extended trial modification and then demands all missed payments in a lump sum or they will foreclose, or Chase skips this step and just forecloses.
Bad bad Chase, Foreclosure, Lawsuits, Loan modification | admin May 18, 2010
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By cheyrl, May 18, 2010 @ 1:27 pm
Wow, that is exactly what happened to my son last week. He filed chapter 13 to stay the foreclosure. Now what???
By Erin, August 27, 2010 @ 3:24 pm
Yep us too!!
Exact Story!
We just started getting a bunch of letters from lawyers trying to “help us out of a foreclosure” so we’re assuming it’s officially foreclosed on.
Luckly I, like Ms. Campbell, am not on my husbands loan so they can have this house. Im already house shopping…kinda fun actually!