Smart Borrower Blog

Trial Loan Modifications Spur Lawsuit Against JPMorgan Chase


May 5th, 2010 @ 7:44 PM by Amber Nelson


JPMorgan Chase is being sued again by angry homeowners. Three Queens, New York residents, who were recipients of trial mortgage modifications under Obama’s Home Affordable Modification Program, have filed a suit against Chase for reneging on its promises to convert those loans into permanent payment modifications.

Alex Lam, 35, Shanaz Begum, 40, and Tamara Williams, 39 are being represented by the Urban Justice Center and all claim Chase denied them permanent mortgage modifications even though they were eligible under HAMP rules.

In the case of Alex Lam, he was told by his bank last year that he needed to miss a few payments before he could be considered for a modification. He followed that advice and was then approved for a trial modification. During that time his payments were lowered by a significant $900 a month. After making all the new payments on time, Lam expected to Chase to convert the changes into a permanent loan. He was surprised when the bank told him his income was too low to qualify and started foreclosure proceedings on his house.

“I was shocked,” Lam said, as quoted in the New York Daily News. “I followed everything that Chase asked me to do and they said they wouldn’t put me in foreclosure.”

“I’m afraid of losing my house,” he added. “My credit history is ruined. I cannot find a bank to help me refinance.”

The other two plaintiffs were also disqualified on income-related issues.

A spokesman for J.P. Morgan told the Wall Street Journal that said the bank would be “happy to talk with the customers, review their situations and see if we can help.”

According to figure from Chase itself, the bank has offered 750,000 trial modifications from last year through March 2010. Only 25 percent of those have been converted to permanent changes, a sign that HAMP, as it is currently being run, may simply be delaying more foreclosures waves, not preventing them.

About Amber Nelson
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.

78 Responses to “Trial Loan Modifications Spur Lawsuit Against JPMorgan Chase”

  1. jj says:

    so jill,

    then who currently is your lender, if not chase?

    i have knowledge of fraudulent practices in the selling-off of mortgages that have been sent to external collections, NB: note i am not saying that what is talked about in this vid is what happened/is happening to you, just that she talks about her experience.

    http://www.youtube.com/watch?v=8VDTAIqOouM

    about what to do next, the mass joinder against Chase i am aware of (headed up bu Stein et al.), requires you to do a loan mod w/ a law firm and now as of yesterday (monday 11/8) there is also a charge to join the mass joinder.

  2. jj says:

    http://www.dobielaw.org/

    i have no direct affiliation w/ this law firm, period.

  3. jj says:

    foreclosure hearing’s testimony,

    the interesting stuff starts at around 1:45 seconds into the vid

    wherein prof adam levitin sports his analysis of loan mod vs foreclosure from lender’s POVs,

    a case of classic class warfare (banks interests vs the lil guys i.e. you and me):

    http://ml-implode.com/staticnews/2010-11-17_ForeclosureHearing.html

  4. Jason Messer says:

    enroll in the Mass Joinder Lawsuit Against Chase / This lawsuit offers Forclosure Protection

    Jason Messer
    Direct: 949 274 8631
    jmesser@nationalhomeadvo.com
    http://www.nationalhomeadvocacygroup.com

  5. Kim says:

    Do you have to live in the city to enroll, or just in the state of NY, I am very interested in getting involved in a suit against chase myself due to improper procedures on their behalf. Please email me all info

  6. i applied for loan mod. from chase. after making 10 mos. of payments i received a notice of intent to forclose. after 2 hours on the phone i found that i had been denied 6 mos. previous and had not been notified.

  7. JOEL CAMACHO says:

    I applied for loan modification loan from chase Bank, one year later the loan was payment was higher.

  8. jerry says:

    i have my mortgage with chase an have filed modification
    for the last two year and got no where with them
    filed 5 modification over the two years
    like to join lawsuit if there is one out there

  9. Nicole says:

    Hey – I want to join Mass Class Action against Chase. I have been applying since November 2007 – over 3 years for a “Loan Modification” that does not exist. I got the HUD Non-profit agency involved last april – 3 weeks before the first foreclosure attempt by Chase. They have repeatedly and continuously “Lost” my paperwork, claim that they did not receive all the papers now for over 3 years and I have filed over (at last count – I stopped counting – ) 9 applications, including eye witnesses at the Non-profit who have been also getting the “run around” or rather, Grand “Chase” at Chase with other people too… We need Help and Info on How to Join Class Action – especially help in Oregon where the economy in Southern Oregon decimated and people leaving in droves, houses in foreclosure everywhere and nobody is talking about how to hold Chase Bank accountable for their shenanigans. Please email me info. I am serious about pursuing a class action. The next foreclosure date is in one week. I want to hold them accountable because I did not put zero down – I put over $80,000 Cash Down – well over 20% down and they are robbing me – a single mother and other single parents like me are now homeless.

  10. Tom says:

    Is there a lawsuit against Chase for their selling of loans before finishing trial mods with homeowners?

  11. Tom says:

    If so, which law firm?

  12. Michael & Cheryl More says:

    We were in the modify program with Chase. We were approved & then they lost the paperwork & started foreclosure on us. We hired an attorney & he found over 10 mistakes Chase have made. They still sold our house out from under us.

  13. Bill and Amy says:

    My mom had co-signed a loan for my sister through jpmorgan chase, my sister passed away in August of 2010, My sister husband remained in the house until Janurary of 2011, he suddenly moved out and left paperwork stating that the house payments were 7,000.00 behind, the bank never informed my mom of the situation nor did my sisters husband, now my mom is responsible for the house, she automatically started the process of saving the home, after 3 months of no answers and several phone calls to jpmorgan chase, never talking to the same person, and submitting all required paper work and death certificate of death of my sister, no one seemed to know the answer, the members whom did return phone calls would ask for my deceased sister, in which they have the death certificate. That tells me no one has actually went over the application and the facts. Two days agao another member called my mom to let her know that if my sister, who is no longer with us, or my mom lived in the home they could not do anything to help and that my mom would be responsible for the remainder of the loan. We dont want to lose my sisters house and if my mom had received a notice before my sisters husband was too far behind we would have been able to take action then. If anyone has any advice on what we should do next please contact me at billandamyprice@hotmail.com, please we dont have much time left, this is all we have left of my sister.

  14. DAVID CUNNINGHAM says:

    I WAS TURNED DOWN TWO TIME 2009 2010 BY CHASE FOR A HOME MODIFY LOAN NOW I HAVE NO JOB TRING TO KEEP MY HOME

  15. Roberta Eagle says:

    I have read all the cmments..OMG..what are we to do..we have been in a modification process for at least 3 years and we are nw down to our final “trial payment” and tday we find ut the lady that was taking care of our loan NO LONGER WORKS FOR CHASE!!!! The lady that tried to help(of course not nowing anything of our case said she had no clue when we would get the final paperwork for our modification. In the mean time, we have paid and sent every paper we were supposed to probably times 5 and our credit scores continue to take a hit every month..and Joe Blow continues to call to tell us we are behind!! OMG..what are we to do????? There has to be a lawsuit somewhere to take care of this action against good people who are trying desperately to avoid foreclosures. We have spent alot of money trying to settle this and several of the groups we were with have gone belly up sticking us with nothing. Home Rescue Program, Prodigy Group, Don Hubbard….all gone leaving us with nothing but lost money. There has to be someone out there who is a good honest human being who can help not only me but the rest of the good Americans just trying to get a break. We are tired of being taken advantage of and I am tired of working everyday only to have my credit score go down the tubes. SOMEONE PLEASE HELP!

  16. Have had total run around from chase on loan mod.Sending paperwork over and over again and getting nowhere, paperwork lost and no mail contact from them etc.

  17. Janet says:

    I live in South Carolina and need an attorney ASAP that practices in Bankruptcy, foreclosure, modification laws.

  18. Janet says:

    I want in on a Class Action Lawsuit against JP MORGAN CHASE for I have been sending in required papers for a modification for some time now. A trail modification was approved then denied. Now all of a sudden we are further behind because we did not pay full amounts. Not to mention Chase has stopped taking anymore payments from us in 2010. I live in SC and struggling to pay the bills and feed three children and with a husband that doesn’t get paid enough for the job he does with his experience and education. In SC. HELP!!!

  19. Val says:

    Chase is doing the same thing in Colorado – how do we join Class Action Lawsuit? How do these people live with themselves? What if every homeowner stopped making their monthly payments in protest? What would the lenders do than? Boycott, boycott!!

  20. Mel says:

    I am not sure if anyone knows this but a lot of this has to do with the state judges, they have portfolios that are invested in these banks so they are quick to side with the banks and that is why we are having problems. I mean how can an attorney bring before a judge fraud without a doubt and the judge turn a blind eye and rule for the bank, I think if the people started going after the judges then perhaps the next judge would not be so quick to pull the same crap. Where does it end I mean if a judge wont uphold the law then who can we really turn to.

  21. Mel says:

    I have Chase trying to collect when it is JP Morgan who foreclosed on me they use the tactic of making you send your paperwork over and over so that each month that goes by makes the payoff higher and they are hoping that eventually you will toss your hands up and walk away WE NEED TO FILE A LAW SUIT AGAINST JP MORGAN AND CHASE anyone interested please contact me at fixtheusa@hotmail.com lets get this rocking and rolling and bring these sons of B*&^% down, and like I stated above and anyone that has been denied by their state judges include them in the suit for allow the fraud to continue and make them answer to the federal judge why they allowed something like that to happen in their courtroom. LETS MAKE CHASE AND JP MORGAN PAY FOR ALL THE RESTLESS NIGHTS!!!!!!!!!!!!!!!111

  22. Payday Loans says:

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  25. Susan Hougan says:

    Same here. I have been trying to modify my loan since June of 2010, with repeated faxes sent to them with same info, they must have lost. My question: I am set up to do trial mod pymts in April for 3 months, how can I be assured by Chase that they will modify my loan? I feel like they are robbing us. They take out trial mod payments then say sorry, no can do. Do you know of any info in regards to what my rights are? Thank you

  26. Scott says:

    Forgive me for being late to the party here. I also reside in colorado. My modification attempts started with countrywide where I put in for a repayment plan which was never forwarded to bank of america which bought them out. Then there was a four month lapse when bank of america died and my mortgage went to WAMU who sold it to Chase. Once I finally got with someone from chase the criteria for repayment was more strict and I was told they could not accept less than an amount… 50% of what was due and 3 times my mortgage per month. I engaged the local government/housing foreclosure assistence group and put in all required documentation, reasons, etc.. and was rejected… then I reapplied and was accepted. I went through a trial plan and paid all the payments. At the end they rejected me stating that I had not put in all the documents… which was provable and incorrect… At some point then they told me there was no way I was going to get a modification, then they asked me to reapply again. I chose to file bankruptcy and rolled the house into the chapter 13 instead. I can help but feel I was cheated because it feels like bad business practices. I am still in chapter 13 and wonder if I have any recourses since I missed the class action.

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