May 7, 2012

The nonsense and outright lies perpetrated by the banks just keeps getting more and more unbelieveable. This latest example is laughable out loud.

Numerous homeowners around the United States have been sending us correspondence from Chase Home Finance (which merged into JPMorgan Chase some time ago) and attorneys representing Chase stating that “Chase is committed to helping homeowners remain in their homes”. These letters have been sent in connection with threatened foreclosure proceedings, and with information as to (purported) loan modification through HUD.

The result is disturbingly the same: the “offer” from Chase is a loan “modification” where the new payment is larger than the monthly payment sought to be reduced by modification. As Chase has actual knowledge that the homeowner cannot even make the current monthly payment, Chase is obviously intentionally setting up the homeowner for a loan modification “offer” which Chase knows must be declined as economically impossible.

To add insult to the injury, the Chase loan mod program is known as “Once and Done”, meaning that if a loan mod offer is rejected that Chase will not make any further loan modification efforts, and will commence foreclosure proceedings.

Chase also has a record, as do other banks, of claiming that a trial mod payment was “not received timely” resulting in a default being declared when in fact the homeowner has proof that the payment was received timely if not before the due date. Again, more evidence of Chase’s intentional manufacturing of fraudulent defaults for the purpose of furthering fraudulent foreclosures.

So there you have it: if you don’t agree to pay Chase more money which Chase knows up front that you cannot afford, there is no loan mod, and you proceed to foreclosure. Obviously this is Chase’s intended result, purposefully structured so that it can tell the Government that “well, we attempted to work with the homeowner, but the homeowner rejected our offer…”, knowing full well that the alleged “modification” was not made in good faith and knowing what the only consequence will be.

More “good public relations” from Chase and Mr. Dimon.

Jeff Barnes, Esq.,