Loan mods a scam?
This blog seems to think (i.e. states as fact) that Chase loan modifications are simply a tool the bank uses to get more money out of people before they foreclose on them and calls the whole program a scam.
Update 4/21/10: Here is another story that is essentially the same: Chase strings someone along while they make trial modification payments, tells them they are approved, and then denies them and demands a balloon payment of all they are behind, which the customer can’t make, so Chase forecloses.
Foreclosure, Loan modification | admin April 18, 2010
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By Denise, June 6, 2010 @ 10:30 am
Chase did the same thing to us. For about a year had us making modified payments, then telling us no for a loan modification, now wanting over $25,000 in back fees, payments, etc or will foreclose in 2 weeks. Any lawyers wanting to pursue this?
By anne, June 11, 2010 @ 3:46 pm
Chase has been reading a lot of Kafka lately. Especially, the Castle, and they’re inspired!:
There are lots of people caught in a terrible loop of Chase “losing Documentation” and making people continually re-send in forms for an MHA even after they are appoved for one by the gov’t. So we had a Chase bank mortgage specialist at a Chase bank fax all our forms for us but Chase still claims they didn’t receive all the required information and then demanded even more information not asked for on the application. Since we own and live in a duplex we must now send them proof we do not have not formed a homeowners association with our housemates, for example.
But the real test of their devious cleverness is a scam based on their own bank statement paperwork. Please admire its Kafka-esque brilliance. On Chase bank statements they leave the last page “left intentionally blank” but they do not number this last page. For example, a Chase account may have 6 pages and all the pages say, i.e., 1 of 6, 2 of 6, but page 6, the blank one, is not numbered 6 of 6. we have been continually turned down for an MHA because we are not sending them, Chase- holder of our mortgage and the bank where we have our accounts- complete bank statements even though we do send them that 6th page. Since it doesn’t say 6 of 6 they claim our application isn’t complete and make us start over from the very beginning. Going on Month 7. Evidently that’s nothing, most people who have tried have been trying for twice this long.
There is one recorded incidence of Chase approving an MHA but it was too late and the house was already in foreclosure…