What the family alleges constitute a pattern of behavior for JPM Chase that has been reported multiple times in multiple instances. For the behavior to be so consistent, the orders have to be coming from far up the hierarchy. This is policy in action.

I'm baffled by this. Okay, I understand 'miss a payment to see if you qualify for for a mod' but when the banks says "nope, pay up", WHY can't these people pay up?

Do they miss the payment and go out to party with it?

Or are penalities like 2x the amount or more they normally pay?

Penalties and fees after an actual missed payment are usually enormous and compounded with compiling interest. Unless the people are sitting on about double or triple their original mortgage payment then they cant catch up. After all, if they had that kind of cash they wouldnt be asking for the mod in the first place. This is a calculated strategy.

thanks. That is bad!!

That is exactly what happened to my friend's mother. Although she was not looking for a mod, she missed a payment (early Alzheimer's), and the fees and penalties ended up being thousands, even after she caught up. She lost her house.

Also, sometimes people make payments and either they are refused or improperly credited. The banks are making accounting errors on a regular basis and pursuing foreclosures based on these errors.

In addition, there was a case in Mississippi not too long ago that showed that Wells Fargo was illegally misapplying payments to penalties and fees before applying them to principal and interest owed, thus snowballing the penalties and fees owed. If you read mortgage papers from the last five years or so, you'll see they reflect the change in law that prohibits this. A federal judge enjoined Wells to stop the practice. A few months later another case appeared before her that demonstrated Wells was continuing the practice, despite the injunction. Wells responded it wasn't their fault but "the fault of the software they use". Apparently WF hasn't gotten around to updating their software, for YEARS now. Uh huh, they're too broke. More likely, too busy stealing homes. If I have time, I'll return later and see if I can find the case, however Yves reported on it on Naked Capitalism.

The rest of the story re my friend's mother's house.

The bank offered to let her (the daughter) keep the house for something over $50,000. She declined. No way the house was worth it - tiny little 2BR, maybe 1,000 sq ft max.

House went on the market and sold for around $22,000. Turns out, it was purchased by a good friend of hers, who has offered to sell it to her for a few thou more than he paid. Dunno if she's going to take him up on it.

So let 'em foreclose, and maybe you can buy it back for less than half price. lol

Sd: Note this part...

Quote:

the family alleged that even after the couple made a payment for an unspecified amount as instructed by the same Chase employee, they received notices of foreclosure and eviction.

They did TRY to pay it back up.

Thanks, I missed that.