Consumer complaint received 2017-05-11
Company: JPMORGAN CHASE & CO.
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Chase Complaint to Banking Commission XX/XX/XXXX Bank : Chase Bank Address : XXXX XXXX XXXX XXXX XXXX, CO XXXX Chase Relationship Manager : XXXX XXXX Phone # : XXXX Problem Statement As the seller, I have been working with Chase for several months to conclude a Chase-approved short sale attempt of our home. We, my real estate agent, my wife, and myself, have complied with every timeframe and procedural requirement of Chase.
Chase has not met its own procedural deadlines and timeframes. o They have not responded to inquires within their designated 48 hours.
o At Chases date recommendations we have had to extend close and due-diligence dates four times since the process began because they can get their own procedures done on time.
o Because the approval procedure has taken more than 120 days, Chase required a new BPO ( Broker Price Opinion ) of the home ( by its own policy ) which further delays the home sale. Currently, Chase has had the new BPO since XX/XX/XXXX. They have been unable to pass it through their internal audit as this date. We are stalled until they finalize their audit process. ( We have been stalled for 22 days. ) o We are currently 4 months, into a process which has no end in sight. o More examples are available upon request. We have received conflicting information from different Chase departments, as well as conflicting information from the same Chase individuals from one day to the next.
o While working through a Chase approved short sale approval process, at the same time, I am receiving notices of foreclosures by a different Chase department. I recently  even received a notice from a collections agency that Chase has referred our account to them. Yesterday, XX/XX/XXXX, a sheriff appeared to server foreclosure papers. I called the Collection Agency who informed of the following : They had no knowledge that the house was in short sale. Chase could suspend or put on hold the foreclosure process The short sale division at Chase has not told me or my real estate agent that there is a foreclosure hearing or date. For all I know, the short sale division may not even be aware of this new action. o More examples are available upon request.
I have a buyer who was prepared to pay {$140.00}, 000 over the BPO.
However, because of Chases procedural delays and in light of recently discovered damages and repair estimates of {$330000.00}, is still willing to only ask for {$100000.00} reduction in price, thus paying {$40000.00} more than the BPO.
I lost one buyer who was prepare to pay {$80000.00} which was {$160000.00} over the BPO of the
home because of the delays and frustration with the Chase procedures.
If the house goes into foreclosure, not only will my credit be more severely impacted, but Chase will now have to disclose $ 300,000+ ( material facts ) in repairs to any new buyer under the short sale structure that may significantly reduce the price that Chase can obtain in an auction. It is Chases best interest to take the current deal, ( they have already lost $ 125,000+ from the lost first deal ), but their procedures take precedent over mine, the buyers, the agents, and the banks own financial interests, as well as their shareholders interests.
Chases own procedures work against their own interests, while putting an additional burden on the buyer and seller. For example, Chase requires dates in the paperwork to be correct at EVERY stage of the process ( clerk review, file holder audit, negotiator review, credit manager audit, finance committee review, and closing department review ). We recently were informed of this requirement. When Chases own inability to meet its own procedureal deadlines occur in one stage, then the next stage of the Chase process requires new dates all of which must be resigned and initialed by the buyer and the seller.
As Chase requires new dates on the HUD, they require a new payoff to be calculated. To receive the payoff, a work order needs to be established. Procedurally, they allow themselves seven days to process the work order and thus receive the payoff amount.
We simply have a situation where a buyer and a seller wish to conduct a free enterprise deal, but is held up by Chase bureaucracy.
Impact 1. Me and my family a. As this transaction moves from short sale to foreclosure, the impact is more onerous and financially damaging to my personal situation. b. The stress on my family, my XXXX wife, in particular, is becoming overwhelming. c. The planning and actual process of moving out of the home has had to be changed numerous times, creating confusion, frustration, expenses and rescheduling. d. As this transaction moves from short sale to foreclosure, the impact is more onerous and financially damaging to my personal situation. 2. The Buyer a. The buyer has {$75000.00} tied up in earnest money, missing the current opportunity in the stock market. b. Increased damage and liability to the buyer as the water-damage related defects continue to be exposed to the elements. XXXX recently receive 8 inches of rain in a three-day period that continued to undermine the structure of the house and continue to place great hydrostatic pressure on a failing retaining wall. Until the deal is completed, much needed water-related repairs can not occur, which only reduces the worth of the home. c. Because of the bureaucracy and delays, the second buyer is considering withdrawing his offer.
3. The Agents a. Loss of commissions ( {$40000.00} ) after hundreds of hours of work trying to comply with Chases short sale process. My agent has been informed that if foreclosure goes through, rather than short sale, the agents receive nothing for their efforts. 4. Chase and its Shareholders a. These Chase delays and procedures have already cost Chase a substantial amount of money ( $ 125,000+ ), but they have said that their procedures are more important than any of their own, agents, buyers, or our financial concerns. b. As a result of these delays, the newly identified defects will now have be disclosed as material facts to any future buyers, resulting in the financial detriment to Chase and its shareholders. Brief History My wife and I have lived at the home listed above since XX/XX/XXXX. In XX/XX/XXXX, my income from my job was significantly reduced, family and business financial problems, and substantial medical payments for my wifes  XXXX treatments, grew overwhelming and it became clear we needed to downsize immediately because we could no longer make the mortgage payments. We looked at selling the house, but an analysis of the local market for houses similar to ours, were taking 1-2 years when the houses were in average market condition time and money we did not have. Because of our financial circumstances, needed repairs to the house had gone unattended ( deferred maintenance ). In XX/XX/XXXX, we put up the house for sale, in an as is condition. Chase sent us the first of several intent to foreclose in the future notices. We contacted the bank about a short sale option. They had an BPO completed which concluded a dollar amount of {$630000.00}. The principle loan balance left on the account was {$920000.00}. We listed the home {$60000.00} over Chases BPO and received five offers, all above the BPO amounts the highest of which was {$160000.00} over their BPO. On XX/XX/XXXX, we submitted the highest offer of {$800000.00} to Chase because Chases policy only allows one offer to be submitted at a time. The other four offers became back-ups. We completed the seller requirements on the contract  within Chases designated timeframe ( XX/XX/XXXX ) and have consistently maintained an active short sale contract in Chases system since that time.
Conclusion 1. Im a seller who wants to sell.
2. I have ready, willing and able buyers who are ready to buy over the BPO price.
3. We have complied with Chases requirements for documents and date extensions, in a far more timely manner that they have responded to their own timeframe requirements. 4. If foreclosure was more advantageous to Chase, then I mig
ht understand why everyone else must suffer. However, it seems to me that short sale is in EVERYONES best interest. The only one to lose is an inanimate bureaucratic process whose procedures can not be met by the best efforts of real people and disadvantages everyone else.

Company response to consumer: Closed with explanation