Shamethebanks.org has posted an article about JP Morgan Chase’s latest escapades in exacerbating the current foreclosure crisis. Apparently, the company was advising people to stop paying their mortgages, saying it was the only way to obtain a loan modification, then turned around and repossessed their homes.
The article specifically mentions one couple, the Jahanis, who have sued Morgan Chase and Washington Mutual Bank for these practices.
In their federal complaint, the Jahanis say they contacted the bank in December 2008 “to indicate that they were having trouble paying their mortgage and would like to discuss a possible loan modification.”
The Jahanis say the bank representative told them “that they would not work with plaintiffs at all because they were currently not in breach of their loan terms. Plaintiffs were specifically advised at that time to stop making payments for a period of three months, at which time defendants would consider a loan modification. Plaintiffs were specifically informed that as long as they were current on their mortgage payments, that defendants would not consider a loan modification.
In June 2009, the Jahanis received a ‘Notice of Intent To Foreclose’ letter from Morgan Chase. They were told they were behind a little over $100 behind on their mortgage payments and unless the balance was paid in 30 days, foreclosure proceedings would commence.
Months of correspondence between the Jahanis and Chase followed, with the Jahanis repeatedly sending Chase documents it had requested, and Chase repeatedly sending them letters claiming it had not received proper documentation and that their loan modification was “in jeopardy.”
The Jahanis say they called the bank to check on the status of their loan modification, and were told to disregard Chase’s letters, that the bank “had in fact received all necessary documentation.”
In October 2009, the Jahanis’ home was sold at a trustee sale. The couple says that people came to their house and told them that “the property had sold at auction, that plaintiffs no longer owned the property and that they (meaning the unnamed persons) were interested in buying the house from the bank.”
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