California Couple Says Chase Foreclosed During Loan Mod Process

We just read that the Huffington Post reported a California couple sued Chase for foreclosing during the loan modification process.   We have been reporting that problem for quite some time here in our blogs.  We are starting to see the first wave of lawsuits from frustrated borrowers who have had enough with servicers who cannot timely process a loan modification in compliance with the HAMP guidelines.

Borrowers need to keep in mind that the foreclosure business can be analogized to the lending boom.  The law firms and "trash-out" companies, euphemistically called "property preservation" companies are having record years.  Whenever a market, with no exception, enjoys such boom times there is always a lack of legitimate checks and balances. 

We will be filing more lawsuits as borrowers have to seek out the help of federal and state court judges.  Borrowers need to be concerned about many issues that are not being properly addressed or explained by servicers.  How is the servicer and lender reporting their loan modification status to the credit reporting agencies?  Are late fees really being waived?  Are the fees being capitalized into their loans during the loan modification process accurate?

We are seeing a lot of recurring problems when we review the paperwork that borrowers have been sending to our office.  Borrowers need the loan modifications in order to save their homes however, borrowers also need to analyze their loan statements and loan modification agreements for compliance with HAMP.