Bayview Man Claims Chase Bank Trashed His Loan Modification Agreement

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Robert Davis was profiled on the radio as a success story -- a Bayview resident facing foreclosure who beat the odds and secured a home loan modification from Chase.

In March, it looked like his story had a happy ending: Chase approved him for a permanent loan modification that allowed him to keep his house. Davis says he even received a personal phone call from the bank congratulating him on his success. Then, on June 1, Davis says he received a letter from Chase saying his modification was canceled -- because, the bank told him, he himself had written to withdraw his request.


To Davis, this made no sense. His path "hacking through the loan modification jungle" was featured on KALW radio earlier this year. Davis (whose name was changed to protect his privacy) has a steady job as a garbage collector, but says he missed his mortgage payments in order to pay for his mother-in-law's funeral. The missed payments put his much-loved Bayview home into jeopardy.

After months of back-and-forth with Chase, Davis thought he had become one of the lucky ones. After his modification was approved he Fed-Exed his final approval documents to Chase in April. He says he had even called the bank to personally confirm the delivery, and was told that all of his documents were in order. He had begun making his new loan payments.

Now, after months of paperwork and payments, Chase was telling him that he had canceled his own hard-won modification.

Every time he called the bank for an explanation, he received a different answer, Davis says.  He was told that the Chase had never received his confirmation paperwork, despite the Fed-Ex confirmation slip and the phone call he made to ensure that his forms had arrived safely. He was also told the letter was probably just a computer-generated fluke, and that the issue should clear up in a few days.

Zack Mack-Westrom, Davis' housing counselor at the non-profit San Francisco Housing Development Corporation, called the situation "utterly amazing."

He called Davis "a model borrower," a person who "crossed every t, dotted every i" throughout the loan modification process, and who had proved he could keep up with his new loan payments.

On top of that, Mack-Westrom said, Davis' case had received special attention from a Chase representative after his story aired on the radio.

Now, even though Davis has meticulous documentation of his entire process, Chase is asking him to start again from scratch.  

"It's in the poorest of bad faith" on the part of the bank, Mack-Westrom said.

Gary Kishner, a spokesman for J.P. Morgan Chase, said he was looking into Davis' situation.

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Nightmarish stories of the home loan modification process have become commonplace, not only in Mack-Westrom's office, but across the country.

In order to secure a loan modification, homeowners have had to struggle through a confusing process, with banks representatives frequently losing paperwork, making mistakes, delaying decisions, giving them contradictory advice, and even denying loans for bogus reasons.

In the past months, JP Morgan Chase in particular has come under scrutiny for denying loans to homeowners for reasons that the Treasury Department had explicitly barred them from using, and for having the highest number of people stuck in "home loan limbo" with trial home loan modifications that stretch on month after month.  

Although the Treasury Department has set aside $39.9 billion to help homeowners avoid foreclosure -- including nearly $6 billion to JP Morgan Chase subsidiaries alone -- only $190 million of that has been spent as of May 2010, according to the watchdog organization ProPublica, which has been coordinating media reports on the struggling federal program. That's because only 20 percent of the estimated eligible homeowners have been approved for a permanent loan modification.

Photo   |   Sercasey

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25 comments
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kwik quid
kwik quid

 A home loan modification is exactly what it sounds like: it is an actual change in your mortgage terms which alters what is paid every month. There are several different ways by which this modify can be established. In some situations, it is simply a discussion between the person who is accountable for transaction and the organization that did the loaning.

jr
jr

we are goin thur this modification bull crap too......and we are ready to give up..they keep giving us the run around..its been months and months of bull...its better to let this house go and start over again.....god will make a way......he always makes a way

Joejoe1815
Joejoe1815

Class Action, New York State against Chase,After having trouble with making my monthly mortgage payments Chase sent me a notification that I may be eligible for a loan modification through HAMP (a government program that requires modificaiton instead of foreclosure).  I applied to this program.  Chase requested so many documents, mulitple times, and claimed I never submitted financial documents when I actually did.  The whole application process was dreadful.  Then, after applying for the loan modification, I was accepted to the trial payment plan.  I made new lower payments, on time every month for many months.  Yet, for some reason Chase denied me a permanent modification.  At one point they claimed they had insufficient documentation, which I sent them on numerous ocassions.  Has this happened to anyone else? I am in the process of obtaining an attorney, and would like to hear from others who have experienced this with Chase.  I do not want to lose my house, and cannot let Chase get away with this kind of business. If anyone is interested shoot me an email at joejoe1815@gmail.com

Joejoe1815
Joejoe1815

I am looking for anyone that was put on the trial period in NYS, I am also  ready file a class action.  You can shoot me an email joejoe1815@gmail.com

Amy
Amy

My story is exactly same as Robert Davis. Even worst is my load have been transferred to a new servicer name LBPS and is not intend to help but being threaten that they are process foreclosure on my house. Anyone have any suggestion on what I can do?

Dennis Gala
Dennis Gala

I own 3 rentals and have Chase loans . I paid extra points because of that fact. I was told 2 years ago that I qualified for mods on all 3. I did get one but they are denying me on the other 2. I have contacted my Michigan Congressman John Dingel and Senator Debbie Stabenow . They do not respond. They do not care. They are my elected officials who I will never again vote for. Chase does not know what they are doing. PAPERWORK AND PHONE CALL HELL IS ALL I GET. I have filed suit. I live in Ann Arbor Michigan. Anyone wanting to share their stories please contact me.

Dennisgala
Dennisgala

I am interested in talking to you. How do I reach you without putting myself out there for everyone to see who i am. Chase has royally screwed me. I have filed suit.

Jackie Foglio
Jackie Foglio

Hi V. Marshall, If it is not too late, I am on board. I successfuly completed my trial mod. then denied negative npv. I wrote the bank regarding data used for their calculations instead of a reply, they recorded NOD and sold/stole my house on 10/22/10. I had already filed a complaint with the FTC/OCC, local congress, AG Brown and a lawyer.

I am now squatting because I receieved the UD Papers however, new lawyer just filed a civil complaint (I live in San Diego). I have been through LIVING HELL with Chase Bank and I cannot believe they are allowed to operate. On 1/22/2011 I received a letter from VP Larry Thrope at the bank informing me that if I need help with my home loan I should write them a written qualified letter - OR REALLY??? Does he know that Chase auctioned my home on 1022/2010?? This is no way for a person to live. Yes they are ruining homes, families and marriages and they are runing the USA.

If there is anything I can do to help, sign me up!

Jackie FoglioSan DiegoI just read your post. I had a home loan with Chase and my story mirrors everyone who is trying to deal with Chase. I have a trial mod which I successfully completed and then I was denied negative npv. I sent them my dispute letter however instead of them reply to my request, they filed a NOD which placed me in foreclosure status. I had a complaint on file with the FTC/OCC, local congress, AG Brown's office and an attorney.

Chase went forward and sold/stole my home on 10/22/10. I am now squatting because I have no place to go except the streets (lucky I live in San Diego, CA). The bank filed a UD case and I obtained a new attorney and he filed a civil complaint. Chase bank is just horrible and I cannot believe they are getting away with their horrible treatment of good honest people.

The latest joke is that last week (1/22/2011) I received a letter from some VP named Larry Thorpe at Chase stating that if I am having a problem with home loan I can send them a written qualified letter. U

MARY PANDORI
MARY PANDORI

TO LET YA KNOW I GOT IT DONE !!!!! CALL YR LOCAL ATTRNY GENERAL AND SENATOR, LET THEM HANDLE IT WRKED FOR ME A YEAR IT TOOK BUT DID IT !!!!!! GOOD LUCK TO ALL

MARY PANDORI
MARY PANDORI

TO LET YA KNOW I GOT IT DONE !!!!! CALL YR LOCAL ATTRNY GENERAL AND SENATOR, LET THEM HANDLE IT WRKED FOR ME A YEAR IT TOOK BUT DID IT !!!!!! GOOD LUCK TO ALL

Debt settlement Attorneys
Debt settlement Attorneys

Robert Davis is able to prove his steal will power. His efforts needs to be applauded.Their are a number of homeowners who are susceptible to the roller coaster ride of the drowning financial condition.

Tracy
Tracy

I, too, lived in Chase limbo for over a year. Then, as my trial payments kept me accumulating more and more late fees and making it look like I was delinquent, Chase transferred my loan to IBM LBPS. Now they are saying I am over $5ooo behind, and foreclosure is imminent. Isn't there ANY help out there for those of us that have been PUT so far behind by these trial payments?? I was only a couple of weeks late with my payments until I began this "trial modification" period. If anyone has any idea how to save my home, please call or email me. tracy_hannon@bellsouth.net662-279-9686. I would be absolutely interested in any kind of class action suit.Also, everyone should notify their congressmen and representatives about this. Maybe together we can call some attention to how we have all been screwed over by Chase Bank and Obama's home loan modification plan!!

Sandra
Sandra

Well I have been through all this with Nationpoint but also went to a legal center so I wouldnt have any problems or scams LOL we were told from the legal center not to make any more payments and not answer any call so we did that was June 09. After a trial modification of 3 months we were approved! We paid 507,000 for our house in 2006 with an interest only loan. So when we were told our new loan was fixed and the balance was 421,000 and no second morgage we were HAPPY. We started paying our new loan for 7 months new payments were great then I get a letter in the mail saying our mortgage was sold to BOA and we had a first and second morgage just as before the nightmare had started. I called the legal center and she informed me that no second mortgage is ever cleared they simply stop sending bills becasuse they dont want to waste a stamp! I am so mad I called Nationpoint who told me that our loan was sold to BOA and we need to send our payments to them. I asked if we have a balance she said no the first was sold and the second was charged off! I was never told any of this and our paperwork never mentions a second, both leinholders are Nationpoint and now BOA. My husband is in the military and I no longer have a job so we will not qualify nor do I want to go through that process again since our credit was 800 but now probaly 350. Can someone please help us this is out of control.

Mike
Mike

HelloI am in individual that has had the same problems (lying and cheating) with chase loan modification that you have. If your still having problems and would like to join in with me in starting a class action law suit please contact me with your BASIC info at this address with the words "class action" in the subject line (my personal Email address and I am trying reduce the spam)

I am building a list and shopping for a firm

RegardsMikeChaseLoanModClassAction@Gmail.com

Joann
Joann

We are going through the same thing with Chase. We started our process in March 2009 and were put on trial payments in July 2009. We made every trial pmt. Through the process we constantly had to send in paper after paper because we were told they were never received them or they needed to resubmit the documents again because too much time had passed and they needed to be current documents. In March 2010 they told us were were denied the Government mod., however a few days later we were told we qualified for a Chase mod. called a step modification that would, over a five year period, gradually raise our pmts. until it topped out at a comfortable pmt. and it would remain that amt. for the life of the new mod. We had an underwriter tell us about our new mod. approval and said that paperwork would soon reach us via fed-ex and to promptly return them because our new pmts. were going to start in June 2010. We were told by a few different reps. to stop sending our trial pmts. because they would no longer count as monthly pmts. because our new mod. pmts. were going to begin in a few months and it could actually hinder our mod. because the trial pmts. were a different amt. than the new mod. pmts. So of course we stopped sending pmts. because we didn't want to do anything to screw up our new mod. that was approved. We also received 2 or 3 phone calls from Chase reps. congratulating us on our approval for our mod. and that we needed to promptly return our paperwork when we received them from fed-ex. When we explained that we haven't received our documents to sign yet, they assured us that they would be there very soon and not to worry. I began calling week after week panicking because June was coming and no papers had showed yet. and kept being told over and over again the documents were on the way and to just be patient because they had so many mods. to do and not too worry because it clearly stated we were approved for the mod. and it could be reworked if the June deadline passed. I called thru July 2010 and was told to please just give it some time because they were extremely backed up with mod. cases and our documents were definitely going to be there soon. I waited until Sept. 2010 and NO DOCUMENTS!!!!! When I called I was given the run around transferred all over hell and back and told my case was escalated and someone would get back with me in a few days to take care of this problem and of course told that they should be able to rework the loan mod. Well of course NO RETURN CALL. so I called again and was told that my mod. was denied just a few days earlier because I never returned my signed documents accepting the mod. terms. ARE U KIDDING ME!!!!!!! I just got a letter today for intent to foreclose. I am ripping my hair out!! My family can't take this mental torture anymore! CAN SOMEONE, ANYONE HELP US! My heart sank as I began reading all these comments. I don't know what to do anymore. PLEASE HELP!!!!!!!!!!!!!!!!!!!!

homeowner
homeowner

I have had a similar experience

lost documents in April may of 2009. Agreement made for trial mod in July 2009.

successfully completed inSeptember 2009.

requests for documents again, several times, several reps.

end of December sent to underwriting again.

Early April, when a short sale regulation made it more attractive to bank to pursue a short sale, was denied loan modification.

Appealed, no response. Trustee sale set, put on hold.

My checks returned and then accepted.

Now back to square one, with the loan mod request with a "negotiator" and in "underwriting. Last time someone said it was with the SRU department.

What the hell is going on there at Chase. Are they playing delay delay until they can fix rules in their favor?

Does anyone know a way to complete a loan mod?

michelle
michelle

we have been in the loan modification program for almost 2 years. the reps all tell different stories and have no explanation for the numbers they come up with. we were notified that we were denied loan modification due to lack of documention. we sent EVERYTHING they requested a second time. after reading these horror stories i have little hope that anything will come of it. does anyone have any comments on their reinstatement process?? is there any way out?

Penny
Penny

I have a nightmare modification story like most of you. My situation has been going on since 8/09. Am willing to join class action law suit.

Allan Anderson
Allan Anderson

We have been in Chase loan modification for over a year. We applied in July 2009 ( for the 2nd time after they lost the final documents which they said were approved, then the offer was withdrawn) So we applied again and submitted all documents as agreed. Every time I called the paperwork was at the underwriters. Finalu got a letter stating our 1st mortgage was approved for modification and the 2nd would be forthcoming soon after. No answer on the 2nd mod and last week I called to be told that the 2nd mortgage was NEVER in loan modification and our home was being forclosed on! I tried to get someone to check back through the notes and they found where the I was told the 2nd was at the underwriters, but this isn't going to stop the forcloseure! I was told they would send a letter of reinstatement to me and I could catch up ny second mortgage over 6-7 months..but I never got it. I called the attorney that sent me the forclosure letter and they said they knew nothing about the loan reinstatement or payment agreements.I made the three trial payments, sent in all documents they asked for and they repeated told me that everthing was OK and not to worry...I have actually called three times in one day and gotten three different answers to the same question....We're done! We wanted to save our home and stay even though it has lost value and the loans are much more than what the home is worth, but the stress of dealing with all the lies has finally taken its toll. We are staying until the sherriff knocks on the door.. I wish I had the guts to squat here and see if I could cause enough publicity to wake up some one in our government ,so they could do something...I just am sick and tired of fighting and will probably leave quietly and hope I have learned something from this nightmare.

Sammi310
Sammi310

I am one of thousands who have lost a home via the Chase Bank grouping.........they dont return calls, refuse payment and as it came about, put my home in auction and did not notify me. They are a shameful mess and should be prosecuted to the fullest degree. A person who bought my home told me the date he found it listed for auction..........I was still in process and I had not even been notified of any foreclosure action. Shame on Chase

ileana
ileana

My parents and I have also been in Chase loan modification hell for almost 2 years. We have been denied for modification twice for missing some document. I called on Aug 17th and they stated we were denied then. I faxed a letter pleaing them to take a second look as my contribution letter was on file. We were given trial payments in July 2009 and in April 2010 the account went into active foreclosure with a sale date. We had to do the package again to avoid sale. I dont want to give up on a modification but would really appreciate some HONEST help. We all need help.

Mary J
Mary J

I have been in Chase hell limbo for a year this past June. Worked with Chase, Hope helpline, my congresswoman, and No relief. Spoke to a lawyer who claims there is no lawsuit. As President Obamas plan was issued guidelines. Nothing protecting us!! There is nothing we can do. I was approved for my trial, made my 3 months payments. All hell broke loose, because they could not get my permanet mod in place. Had to re-apply 5 different times, all being denied for one reason or another...(lost paperwork, paperwork over 30 days please re-apply. underwritter quit, excuse excuse..same as above story.) Left messages never get calls back. Been in Loss mitigation, homeowners preservation office, etc. Nothing makes sense as I could type forever on my over a year hassle. (all my hard work and documentation, just a waste of time it seems) Just yesterday, I recieved a letter of Intent to Forclose. Called Chase again today, and hung up in tears. Bullying over the phone on how its my fault on my deliquency. This women would not even give me her last name, ID number, and refused to give me her supervisor. Our credit score is gone. WE NEED HELP!

danh hong
danh hong

we should bring this cheating bank to the justice. Chase gave me trial modification for 6 months. Even though I paid on time but they then still denied for final modification on 07/15/2010 with the same reason with your guy- (the victims of Chase loan modifcation program)- "missing document".They gave me the trustee sale on 08/12/2010. I called them and complained about that but they said that I have to re-apply for loan modification. I did that and submit all document again at the end of 07/ 2010. I kept calling them to follow up and requested them to postponed the trustee sale.On 08/09/2010 they stillwant me to submit additional document (2 months bank statement) and stated that I have 30 days to response . I did fax these document right away. They did received and said my application reviewed by their manager. On 08/11/2010 I called many times to request postpone the trustee sale on 08/12/2010 which will be tomorrow. Over the phone (with the witness), they promissed to postpone 2 weeks to review my loan application. I trusted them but I am still worried for trustee sale tomorrow. The fact is that my house was sold on 08/12/2010 with the price $170000. Chase bought my house.On that day 08/12/2010 I did call them many times to request them to answer about their promise.They just turned aroundfrom one person to another without giving me any solution. They said that they already email to the person who has responsible to solve this problem but sofar I get no answer, they get around the bush. I lost my house. I want to bring them to the court to answer what they did_( I have all documents to prove that Chase is cheating). we must stand one union to against this cheating lender- not only they cheat on us but also they take advantages of goverment to make money

Anonymous
Anonymous

OMG I just read an asact story like mine i benn on a trial loan mod for about 7 months I was told my case was in the final stages that in was with the underwriters desk and that all looked good I would call them 2 times a week just to make sure they did not need anything Well after I had called them and being told all was well I receive a letter in the mail saying that my modification had been denied due to not submitting paper work requested ! NO FREEKEN WAY!!!!! I was never told I needed any paperwork and i was told all was looking good I cryed for hours and calleds them back and they told me that my case was close that I needed to resubmit all my paperwork again and then iven a different reason why my mod. was denied the rep said they never received my trils loan paperwork when like someone else in this forum i also had the fed ex confirmation that they did witch by the way they would not have continied with the trial if they had not received the paperwork LIARS LIARS LIARS !!!!! I am in for any Class Action lawsuit it is so sad to hera they they are playing with peoples lives here Our home is our Castle for them to do this to us its not right :(

Perry Bubis
Perry Bubis

I am in similar predicament with loan modification with Chase Bank. They have been holding me off now for 14 months and applying saved money as a debt. Does anyone know of a class action lawsuit against Chase for this reason? I would be willing to join one.

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