Consumer complaint received 2016-05-05
Company: JPMORGAN CHASE & CO.
State: PA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
I am currently applying for a mortgage and my credit score is severely and adversely affected by an item on my report that should not be there. Based on my past experience with this lender I did not reach out to them first as it would have been a complete waste of time. 
A partner and I purchased a XXXX home in XXXX New Jersey XX/XX/XXXX. At that time we secured an adjustable rate first mortgage loan with Chase Manhattan ( Chase Corp ) # XXXX. During the real estate meltdown that ensued in XX/XX/XXXX and beyond the property value dropped considerably. As owners we decided we were going to keep the property for years to come and had decided to pursue replacing the current adjustable rate mortgage with a fixed rate mortgage. However, due to the significant drop in value we were unable to refinance the property into a fixed rate. I contacted Chase by phone and asked if they would consider a loan modification simply changing the loan to a fixed rate on our XXXX home property. FYI ... there were never any late payments on the loan ... .ever. Chase said they could not entertain a modification since the loan was not currently delinquent! I asked the Chase representative if the loan was, in fact, delinquent would Chase then consider the modification and the representative answered YES. The Chase representative stated the only way Chase would consider a modification is if the loan was in delinquent status at the time of the request. I reiterated several times that the property was a XXXX home and specifically asked the Chase representative if they would do a modification on a XXXX home and the answer repeatedly YES. My partner and I subsequently stopped making payments to Chase and after two months applied for the modification. We continued to supply all the requested information to Chase repeatedly ... often times sending the same information to the same people over and over ... .as if they kept losing the material we were providing. The representatives were impossible to reach on the phone and when they were reached the were generally insolent. After initiating this process XX/XX/XXXX and going through all these gyrations with Chase ( at their instruction ) our loan modification was ultimately denied. We received a letter from Chase dated XX/XX/XXXX stating the reason for the denial as " you must live at the property full time, and your property appears to be vacant ''. Beyond ridiculous given the fact we were specifically told by the Chase representative that the property being a second home was not an issue. 

There were never any late payments on this account PRIOR TO the modification attempt and, after receiving the letter declining the modification attempt, the account was immediately brought current and was never late again. The property was sold and the loan was paid off in XX/XX/XXXX. 

I feel Chase misrepresented what could be done and as a result my credit was negatively impacted. I feel what Chase did was emblematic of what was happening with all institutions at the time ... .and now, as a consumer, I am paying the price. I am certain Chase will deny how this happened ... .but I would sign a legal notarized affidavit laying out exactly what happened just as I have here. I want this account completely removed from all XXXX credit bureaus ... ..period.

Company response to consumer: Closed with explanation