JPMorgan Chase Facing Wrongful Foreclosure Lawsuit in Federal Court
Advocate for the Injured
April 8, 2010 - JPMorgan Chase is facing a lawsuit from a homeowner who claims they were a victim of wrongful foreclosure. According to reports at the Courthouse News Service, the homeowners allege that representatives at JPMorgan Chase told them that they would not be eligible for a loan modification unless they were behind on their mortgage. The bank representative then instructed them to stop making payments on their home loan for 3 months, which would then qualify them for a loan modification.
The plaintiffs in the lawsuit, Faiz and Khadua Jahani, followed those instructions and stopped paying their mortgage for 3 months. Shortly after the Jahanis missed their first mortgage payment, Chase reported their delinquencies to the credit reporting agencies, which severely damaged their credit.
The Jahanis then received a foreclosure notice from Chase, even though they allege that the bank had specifically instructed them not to make their payments. When the Jahanis attempted to rectify the problem, Chase told them that it had not received their paperwork. This is a common stall tactic encountered by homeowners seeking loan modifications.
13 Comments to "JPMorgan Chase Facing Wrongful Foreclosure Lawsuit in Federal Court"
When I attempted to refinance, I was told that my house did not have equity and was worth less than the loan, so I would not qualify for a refinance. I was then advised to apply for a Home Modification as there are multiple options available if the modification was not approved. I made 3 unsuccessful attempts to obtain a modification and given the run around.
Recently, on (6/15/11) I called EMC to determine if they received my latest mortgage payment, because the check was not cashed after 2 weeks from the time that I sent it. I was advised by the EMC Services Representative that my mortgage was in Active Foreclosure. My Loan was over 3 months behind in payments and that EMC will not accept my payment because of the status of the loan; and 2nd Loan was currently behind by 2 months and in threat of foreclosure.
I disagree with this assertion, as I have made every monthly payment on both loans since 11/15/06.
I since went through my old bank statements in order to validate my position. I also put together a spread sheet that summarized my payments and dates that EMC cashed or accepted each payment. I sent the information to EMC Customer Service via Fax and US mail, including copies of the supporting bank statements.
There is an interesting practice developing at our nation’s big banks. Borrowers who are in or nearing foreclosure are being offered thousands of dollars to short sale their homes. Some are even being offered $35,000 to get rid of their homes, and quickly. This situation presents an intriguing insight into the way banks are thinking at the moment. Banks would rather pay you and take a loss rather than foreclose on homes.
Do such offers signify that banks have learned their lesson and are trying to get out of sub-prime loans, or are they looking to just prevent further losses? Perhaps the answer is that the banks are concerned about existing home prices. Bank of America’s chief economist, Mickey Levy, while speaking privately, spoke of the concern that the 1.8 million bad loans in the nation will drive down the market if they go into foreclosure. Such fears help explain why the banks are desperate to avoid foreclosing on homes. They don’t want the rest of their loans to become vulnerable: the more foreclosures, the more house prices fall, therefore, the value of the banks’ loans go down and more people want to walk away from their homes, causing the banks even more losses.
In the end, this situation is a win-win. Not only do banks protect home prices, but they stand to get back more money quicker from a short sale than a foreclosure and the good publicity would be a nice change of pace for their PR departments. Homeowners in trouble are also helped because they can get out of their houses with some cash in their pockets and get on with the rest of their lives.
2500 Weston Road, Suite 404, Weston, FL 33331. Their website is http://www.oppenheimlaw.com/foreclosure_law.html and see if they can represent you and other plaintiffs. They were successful in representing us in stopping a lender from foreclosing on our property but I'm not sure if they can fight your lender after they've already foreclosed on the property. If they can't represent you, they may be able to refer you to someone who can. Good luck and I hope you win your case if you proceed with litigation. Several banks out there are viciously intent in delaying their decision on a loan modification so they can maliciously foreclose on struggling homeowners who honestly want to keep their home and are working diligently to submit all documents required by the banks.
For all others out there who are under loan modification but suspect that your lender may foreclose on you anyway: Write a letter to your state's attorney general, to the lender's president and vice president, and last but the not the least to the office of the comptroller of the currency (whose goal is supervising banks to ensure that they operate in a safe and sound manner and in compliance with laws requiring fair treatment of their customers and fair access to credit and financial products) and let them know how your lender's loss mitigation department and/or loan modification department are treating you. Ask them to help you. Fight for your property!
I am also looking for attorneys in Miami doing QUIT TITLE ACTIONS.
Mauricio Lacayo / Miami, Florida
At this point, the only way to stop the foreclosure is to file bankruptcy.
My wife is having the same issue with US Bank.
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