Bank Forecloses On Home After Telling Couple To Stop Paying Mortgage

[babylonsister]

Arthur Delaney
Chase Sued: Allegedly Told Homeowner To Stop Payments, Then Foreclosed
First Posted: 04- 6-10 03:22 PM | Updated: 04- 6-10 06:09 PM


JPMorgan Chase told a California couple to quit making mortgage payments in order to qualify for a loan modification but then foreclosed on their Sacramento home, according to a lawsuit filed in federal court.

Faiz and Khadija Jahani called Chase in December 2008 because they were having trouble making their mortgage payments. According to the suit, they were told that they wouldn't qualify for a modification without being delinquent and that they should stop making payments for three months.

At the beginning of June, the Jahanis claim that they were told they qualified for a modification that reduced their monthly payments. Three weeks later, they received a letter telling them the bank intended to foreclose. This confusing back-and-forth continued for months, with Chase repeatedly asking them to resend paperwork, according to the complaint filed in U.S. District Court, Eastern District of California/Sacramento Division, which was first reported by Courthouse News.

The couple is demanding damages of $150,000 for breach of contract, fraud, predatory lending and violation of the Fair Credit Reporting Act.

In October, a real-estate investor knocked on the Jahanis' door and asked them about buying the house, telling the couple that it was a bank-owned property. When the Jahanis called Chase to find out what was going on, they claim they were reassured that the bank had not foreclosed on the house.

"They kept getting conflicting information," said lawyer Piotr Reysner. He added that, as far as he can tell from public records, the bank did in fact foreclose on the property. "Unfortunately, they face a situation right now where they could easily get a three-day notice to quit the house."

Chase did not immediately respond to a request for comment.

more...

http://www.huffingtonpost.com/2010/04/06/chase-sued-allegedly-told_n_527031.html

[Justice]

1. Incredible

[gristy]

2. Did the homeowner stop paying the mortgage on only verbal instructions?

Hopefully the homeowner learned a few lessons:

1. When someone tells you to do something that may cause you trouble, double-check and triple check those instructions.
2. Get those instructions in writing, along with a promise that the corporation giving those instructions agrees to take on any and all responsibility for any bad things that may happen to the homeowner should he follow those instructions.
3. Even if you've successfully executed 1. and 2., don't do it.

Really, this homeowner doesn't sound too bright.

[virgogal]

4. I agree-----the "get it in writing" thing should be part of everyone's

basic education.

Talking to someone at an 800# is worthless.

[Bolo Boffin]

3. Proving once again there's no such thing as too big to fail.

This kind of bank we could do with a little less of.