Consumer complaint received 2018-10-12
Company: JPMORGAN CHASE & CO.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
We originally purchased our home in XX/XX/XXXX, with an 80/20 combo loan totaling around {$170000.00}. The loans were immediately sold to XXXX which was communicated to us during closing. By XX/XX/XXXX XXXX sold the loans to Chase Home Mortgage. In XX/XX/XXXX we lost our grandson and incurred unexpected expenses that impacted our budget. In XX/XX/XXXX we sought a home loan modification with Chase and became entangled in that process for the next 4+ years. 

After being identified as an eligible member of the class action lawsuit against Chase, we were approved for a modification in XX/XX/XXXX. This occurred after we submitted and resubmitted at least 5 separate modification requests with them from XXXX to XXXX. Although some terms in the modification seemed suspect ( balloon payment, no itemization of increased principal amount, loan forgiveness amount ) we accepted the modification agreement to alleviate the enormous stress and put an end to our modification nightmare. 

Since then our children are now adults and we no longer need a 2,900 square foot home. We decided to sell our home and downsize. We recently found a buyer for our home and began the selling process. As we neared the end of the process, we were hit with a shocking bit of news. Apparently our 80/20 loan had been broken apart and the 2nd loan was either written off or  bundled/sold back to XXXX, unbeknownst to us. That loan has been floating around out in the mortgage universe and is currently a huge barrier for us in trying to sell our home. 

During our modification process, we requested and Chase affirmed that our 80/20 loan would be consolidated into a single loan. This topic was discussed numerous times over the course of 4+ years. The final principal balance calculation in the modification agreement was relatively close to our original loan amount of {$170000.00} for both loans ( # XXXX and # XXXX ).  The principal balance was around {$180000.00} plus additional interest, fees and a deferred principal amount for a total of {$210000.00} all under one loan # XXXX. We didnt reap the benefit of a lower payment, but we agreed since we understood the loans to be combined. After such a lengthy and exasperating ordeal, we were ready to get on with our lives. 

Now we are facing this second loan, inflated by 50 % over the original loan amount of {$34000.00}. We are currently paying Chase for our modified loan # XXXX. Chase says they can not release the lien on the 2nd loan because they no longer own it and has an outstanding amount due. Chase referred us to XXXX, who says they can not speak to us because they have transferred the loan to XXXX for collection. XXXX says they can not release the lien unless the {$51000.00} is paid. They only service the account and XXXX is the actual owner of the loan. 

We are caught in a corporate loop between Chase, XXXX and XXXX. Ive not been able to speak to anyone with the authority to research or make a decision on the situation. The practices have been familiar they have requested that we provide document after document after document, which we have done. Yet we still have not moved from Point A. I have been unable to get the matter escalated higher than a customer service specialist or customer service supervisor. None of whom have the authority to resolve this issue. After going in circles for 45 days now, were fed up with the basic, patronizing rhetoric from XXXX, XXXX and Chase. 
We have now been unable to meet our closing date multiple times trying to resolve this 2nd loan issue. Once again the consumer gets stuck holding the bag for corporate bad actors. It is well documented that the loan modification program was mishandled by most banks and servicers, so its likely that mistakes were made whether accidental or intentional. Since Chase orchestrated our loan modification, they should be able to review the work done and render an honest, factual assessment on this case. 

Following are questions regarding the Modification, that if answered and supported with documentation can provide a resolution : Was the original 80/20 Combo ( 1st and 2nd ) Loan consolidated into Loan # XXXX during the Modification process to fully cover the value of the home? 

1 ) Prior to Modification approval in XXXX, where were payment funds applied for the 2nd loan since terms from the original 80/20 loan were still in effect? 
2 ) What can Chase do to dissolve the 2nd loan and effect a lien release, if in fact it is consolidated into Loan # XXXX? How long will it take? 

If the 2nd loan # XXXX ( currently owned by XXXX & serviced by XXXX ) is a valid loan, 1 ) Did Chase write off Loan # XXXX and if so, when? 
2 ) What is Chases practice for writing off a home loan?

3 ) How did the original principal amount of {$130000.00} on 1st Loan #  XXXX result in a loan modification amount of {$210000.00}? What does the {$79000.00} difference consist of? 
XXXX ) What does the Deferred Principal amount represent in the modification?

5 ) Why was a 1099C issued and what did that amount represent?

6 ) Was the 1099C issued in accordance with the modification agreement?

7 ) How many times can a loan be written off?

8 ) Was Loan # XXXX bundled and sold to XXXX, and if so when? 

We are desperately hoping that help still exists for average Americans seeking facts and simple answers. Albeit, against large corporations who are not motivated to act with full disclosure and integrity. 

Thank you for your assistance.

Company response to consumer: Closed with explanation