See full story below… this is going to start happening more and more. The bottom line in this bank charade is that the big banks/servicers are NOT modifiying people’s loans according to the Making Home Affordable (HAMP) provisions and in accordance to their Servicer Participation Agreements with the US Dept. of Treasury, Fannie Mae and Freddie Mac. Why? Becasue they don’t make as much money when they modify… they’d rather keep a homeowner in default and ultimately foreclose. It all boils down to massive greed.
You know, what really galls me about all of this is that these banks took taxpayer funded bailouts which were given to them AGAINST the will of the people but they took the bailout money and now they are givin the US taxpayer the finger when it comes to modifying millions of homeowners into a federal program which would seriously stabilize the entire economy if it were truly implemented. The worst part of this situation is that the banks/servicers who received the bailout money and who are denying loan modifications really don’t have anything to lose really; they sold these mortgage loans they now service so they have already been paid on them. You know who really owns these loans? You and I do basically… city pension funds, state pension funds, mutual funds. Oh yeah… these fraudsters sold the toxic assets to the American people, insured themselves against the default of the toxic assets, came crying to the government to bail out their insurance companies when the claims exceeded the ability to pay out, took bailout money to “stabilize” the bank when they started to fail and now they treat defaulting American homeowners like complete *!$@ when they call the bank to ask for help to save their home and offer to keep paying a payment that they can afford because the whole damn economy has been imploded by their reckless and greedy behavior.
I for one will NEVER put my worthless money in any of the big banks ever again. A safe at home is safer than depositing any money in a bank. Use a small community bank or local state bank. Credit unions are just as bad if not worse. Seriously, we should all collectively bring the big banks to their knees by simply exercising our right of choice. Take your money out of their bank and go open a new account with a small community bank.
If you continue to do business with the likes of Chase, Bank of America, Wells Fargo, Wachovia, US Bank, Citibank, et al. good luck… you’ll probably be forced to sue them one day just to make sure they abide by their agreements because they really don’t care about you at all.
Chase sued in NYC for denying foreclosure relief
Three Queens homeowners allege the bank illegally delayed and denied their applications under the Home Affordable Modification Program; suit seen as first in NYC.
By Amanda Fung
Published: May 4, 2010 – 12:28 pm
Three Queens homeowners filed a lawsuit against J.P. Morgan Chase Bank N.A. and two of its subsidiaries, Chase Home Finance and Washington Mutual Bank, claiming that the groups illegally delayed and denied their applications for permanent foreclosure relief under the federal Home Affordable Modification Program. The lawsuit is seen as one of the first cases involving the modification program in New York City.
The lawsuit, which was filed in the Eastern District Federal Court in Brooklyn, claims that the bank violated the federal program that requires banks to provide permanent modifications to eligible homeowners who complete three months of trial payments and verify their income. Similar lawsuits have been filed against a number of other banks, such as Bank of America and Wells Fargo, in other states over the past year. Last month, a California couple reportedly sued Chase because it told them to stop making mortgage payments so they could qualify for loan modification. Chase then foreclosed on their home.
Chase declined to comment.
“Chase breached their contract,” said Carmela Huang, an attorney at the Urban Justice Center, which is representing the Queens homeowners in the case. “As far as we know, this is the first case in New York.”
Homeowners from three Queens neighborhoods—Queens Village, Fresh Meadows and Jamaica—are suing to force Chase to modify their loans and end foreclosure proceedings.
Despite making timely trial modification payments two of the homeowners were denied permanent loan modifications and their homes were foreclosed, according to the lawsuit. Chase claimed that their incomes were inadequate for the permanent loan modification, but refused to specify income qualifications, said Ms. Huang.
Similar to the California case, the third plaintiff in this lawsuit is a homeowner in Fresh Meadows who claims that the bank instructed him last month to deliberately miss payments so he would be eligible for a loan modification. The homeowner had refinanced in 2005. As a result of missing two monthly payments, the homeowner now faces foreclosure. While the homeowner was placed on trial modification last year, he was denied permanent status based on the value of his house. But the bank has not disclosed the value. The Home Affordable Modification Program requires banks to offer trial modifications as long as the value of modifying the loan is more than the value of foreclosing.
“Our clients’ situation is not unique. We have been inundated by people in foreclosure,” said Ms. Huang, adding that homeowners don’t have enough resources to sue banks. In this particular case, Urban Justice is providing its legal service for free. “The law is clearly on our side. We hope Chase will settle quickly.”
Loan modifications under the federal program reduce homeowners’ mortgage payments to 31% of the homeowners’ income by reducing the interest rate, extending the term of the loan or adjusting monthly payments. According to Chase, since the start of 2009 the bank has offered 750,000 homeowners loan modifications nationwide, 25% of those were permanent. The bank does not break down regional information.