Consumer complaint received 2019-01-03
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: JPMORGAN CHASE & CO. (NY)

We want t express my frustration on working on a Short Sale request with JP Morgan Chase and FHA Mortgage my Investor. Not only did they make the situation matter more complicated, they made it worst. 
It all started when I requested a Loan Modification back in XXXX. More than 6 years ago, I requested a loan modification on my house because we were experiencing an extreme hardship, in our income due to a reduction of hours, and we were not making the same amount that we were once making. Throughout the whole process, JP Morgan Chase kept denying us a Loan Modification due to income. I don't understand how the income did not reach to make a payment in which we were making more than when we brought the house. Last year by the end of XX/XX/XXXX, we were trying to complete a review for a Loan Modification and were denied after almost a year of being not only under review by the underwriters, but also they kept requesting more and more documents which kept  delaying the file. On XX/XX/XXXX, I was denied a Loan Modification due to the Income was not sufficient to make an affordable payment. In this case, {$9700.00} Gross Income was used and {$6800.00} As Net, how is this possible that with an income of almost {$120000.00} we did not qualify for a house that was not even worth {$300000.00} at the moment. We were told we need it to Sell the House in a Short Sale. 
Back in XXXX, we called Chase and asked what is the process to execute a short sale. They advise us we need it to " List the Property '' and come up with an accepted offer and a contract to execute the process. The property was listed on XX/XX/XXXX as per their request, with a Listing Price of {$340000.00} that was the Appraised Value at the moment. By XX/XX/XXXX we had an accepted offer and went into contract on XX/XX/XXXX { attached is the contract of sale }. 
The Short Sale Package was Faxed over to JP Morgan Chase on XX/XX/XXXX along with Corresponding Documents for the Short Sale. By XX/XX/XXXX, the file was assigned to XXXX XXXX as a Home Reservation Specialist. As a general path, documents were requested throughout the whole process, such as new RMA, Pay stubs, bank statements and letter of explanations. On XX/XX/XXXX, we were advise the file was Conditionally Approved for a Short Sale. The following week, we called lender and they advise they just need to execute an Appraisal which was part of the Guidelines set by FHA. Once the appraisal came in, property was valuated at {$380000.00} and a counter offer needed to be made by buyers due to the fact that at 88 % of the Net Proceedings, which was a Net of {$330.00} would not cover this Net along with other expenses as far as Real Estate Commission, Transfer Tax, Deed Charges and Relocation would not cover under the offer of {$350000.00}. We spoke to buyers and they agreed to do a counter offer of {$380000.00} in which JP Morgan Chase Requested { Letter is Attached }. Now after all work has been done, and we are trying to execute a Closing Date, JP Morgan Advise that FHA has decided not to move forward with Short Sale and Move Forward with a Foreclosure Proceedings and Sell the House at Auction { Letter is attached }. How is this possible that we have gone through a process of nearly 6 months, and now they put this clause. Its not fair that I been trying to get help since XXXX, and all you have wanted was to foreclosure. Now I'm under the predicament and Im facing even a worst issue. Buyers are threatening to sue me due to a breach of contract if I dont comply with the sale of the property under the short sale. They are also suing me for expenses accrued on the short sale process such as their appraisal, which has been done twice and a property inspection all accumulation to {$1500.00}. This is not fair, all we want is to get a workout that would be a win win situation for all of us. I want to sue Chase for everything that they are doing to us, specially now when we were finally approved at least for a short sale, but you want to remove it and do an auction due to finding out the rel price of the property. This is observed and you should be ashamed of yourself. JP Morgan Chase is claiming that the Investor is FHA and they have the power to do what ever they want. I want whats right to be done in this case before I sue JP Morgan Chase and also sue FHA Mortgage under the court of law.