JP Morgan Chase - Mortgage Dispute

Posted on Wednesday, January 28th, 2009 at 1:33pm CST by 517aa7fc

Product: JP Morgan Chase Home Financing

Company: JP Morgan Chase

Location: Miami, Florida
Miami, Fl, US

Category: Other

I live in New York and purchased a condominium in Homestead Florida in April of 2007 with a mortgage from Chase Home Financing. Two days I was served by mail, with foreclosure papers. Here is what happened to me.

When I contacted Chase for a mortgage to purchase the condo, my loan officer Bonnie Smith initially offered me two financing options: 100% financing, and an 80/20 option. When she presented me with my possible monthly mortgage payments, I immediately told her no way could I afford those payments, and therefore, I am no longer interested in purchasing the condo. I had already made a good faith deposit to the realtor, but decided I was okay with loosing that deposit. Bonnie did not want me to give up. Note here, I had a FICO score of 720, and varifiable income. Bonnie asked what would be the ideal/affordable monthly expenses on the condo, and I gave a number, which was far less than the monthly expenses she had worked out. I thought that was the end of the story.

Note again, this was in May/April of 2007. The real estate market was slow, not much business was being done. I was an excellent candidate as I had stated, FICO score of 720 with varifiable income. Bonnie seized on this opportunity. She got in touch with the realtor, and got them to take less commission on the sale, and got the seller to contribute to the closing cost. She then got back to me with a new number, this time, a number within several dollars of the affordable monthly payment that I had told her I could afford. I specifically asked Bonnie whether that monthly mortgage payment included taxes and association fees, and she told me yes without hesitation. (I was to learn later that association fees are not included in mortgages payments).

Note again, all the necessary negotiations with the exception of the actual closing, was done over the phone since I live in New York, and Bonnie was in Florida. After she presented me with the latest financing option, one that I thought included taxes, and association fees, I agreed to the mortgage, got a closing date, and flew to Florida for the closing. Bonnie said she would see me at the closing. She was not there, and I should have smelt a rat then, and only if I had. Nothing was brought up at closing with the time just being spent signing papers.

The purchase was completed in April of 2007. In January of 2008, I received my annual mortgage state, and telephone Chase to inquire how much was paid in association fees. Then is when my horror began to unfold. No association fees were paid on the property from date of purchase. Again, note I live in New York, the condo was empty, and I hadn't gone to Florida since April of 2007 when I purchased the property.

I called Bonnie Smith at Chase to no avail. I then filed a complaint with the Office of the Comptroller of the Currency, Administrator of National Banks, who in turn forwarded my complaint to Chase Executive Resolution Group. Chase's Executive Resolution Group asserted that the conversation between Bonnie and I in which she told me that my monthly payments included taxes and association fees, was a private conversation between Bonnie and I, and had no bearing on my mortgage. I informed Chase that this new discovered expense of association fees whould result in an undue hardship on my finances. Chase suggested that I refinance, only, the refinancing officer they referred me told me the property was worth far less that the outstanding mortgage, and he couldn't refinance. He suggested I got back to him in six months. Chase further told me that as long as I continue to pay the mortgage, there is nothing they can do to help. To complicate matters, my mortgage was suddently reworked to reflect tax increases in excess of $600.00. Needless to say, I couldn't afford the payments, and despite submitting my financial information on several occations, as per Chase's request, Chase denied all work-out possibilities and options, hence my foreclosure today.

I have consulted with Florida counsel on the matter, and was told that because all real estate transaction is and must be done in writing, it would be difficult to enforce Bonnie Smith's deliberate and malicious lie.

1 Comment

a73c831b, 2014-08-31, 10:41AM CDT

I have a JP Morgan chase home loan. I recently applied for a modification to my loan as my employer may have future impact on my current salary in knowing this I contacted the modification dept. they were terrific in all aspects of making " home affordable" under the new govt provisions. However , after being approved for loan I found that taking this modification would crush my credit overview including most importantly my credit score. after finding about this information I declined the modification and no paperwork was signed or agreed upon. after researching my credit score I realized they had put loan in motion even after my consent. JP Morgan reported to all bureaus and my score dropped 71 pts. I am actively seeking legal suit as JP Morgan should not have continued after I backed out of modification. everyone seeking modifications should clearly know this impact prior to even entering this potential remedy of reducing said mortgage payments.

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