Consumer complaint received 2018-06-21
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: JPMORGAN CHASE & CO. (MD)

This is a formal complaint about what I endured for the past 18 months attempting to work with Chase to save my home from foreclosure. Much of which, I know find, seems to mirror practices that have resulted in lawsuits and unfavorable publicity against Chase in the recent past. I have previously contacted the XXXX XXXX, Customer Service, and the Foreclosure and Short Sale offices at Chase about my disappointment and frustration with this process. This is a summary and an update. 

I lost my job in XX/XX/XXXX and ceased paying my mortgage and my XXXX. In XX/XX/XXXX I submitted my first request for a loan modification once I was notified that I was in foreclosure. I submitted all required documents. Several weeks later a Chase representative from XXXX XXXX foreclosure team told me that since I had an XXXX lien I could not continue with the review process. I was advised to make a deal to satisfy the lien with the XXXX. To that end I entered into a payment plan ( currently a {$5200.00} balance ) to pay the arrears, with a stipulation that any and all liens would be satisfied upon completion of these payments. I then provided Chase with the signed agreement. I was then told that my request had, once again, and without disposition, expired and I would need to resubmit my request and related documents for a loan modification, the sale date was again put on hold and the foreclosure labeled inactive. I complied as requested with a new request package. 

After several weeks, I was told by a Chase representative on XXXX XXXX foreclosure team that the payment plan ( that I entered into and was paying at their suggestion ) was insufficient. I was told that Chase policy would not permit a modification with an outstanding lien against the property. The foreclosure was active again. A Chase representative suggested that I speak to someone at HUD/FHA regarding the XXXX problem. The FHA Modification office in California notified me, after talking to Chase, that Chase could, in fact, simply wrap the XXXX arrearage into the modified loan. After all the calls and conversations I had with Chase, it was never suggested to me that this was as an option. After speaking with XXXX XXXX XXXX and requesting that Chase wrap the {$5200.00} ) into the loan, I was again required to submit a new Request for Loan Modification. In approximately 2 weeks I was notified by XXXX XXXX that Chase had reviewed the wrap option and denied the request. In each case of seeming delay, leading to my modification request expiring without disposition, I was told on the phone, but never in writing. 

Responding to my frustration, one of those foreclosure team members suggested I speak with my XXXX or strike a better deal to clear the liens prior to re-submitting my request. On a few occasions I was invited, in a not so friendly manner, to withdraw my request for modification if I was unhappy with the process or re-submit requesting a short sale option. Under serious duress about my housing situation I agreed to request the short sale option. 

Chase approved the short sale process in XX/XX/XXXX and I received a new Chase relationship manager named XXXX XXXX, and within a week secured and submitted a contract with a cash buyer for $ XXXX ( the appraised value was $ XXXX ). My realtor spoke with Chase negotiator XXXX XXXX ( from XXXX XXXX short sales team ) to find that the offer was neither approved or denied, but, to be fully considered, needed to be higher to meet the appraised value. She added that to resolve the lien issue I would need to concede any Cash for Keys from Chase ( approx {$4000.00} ),  and my buyer would need to contribute $ XXXX towards satisfaction of the {$5200.00} lien balance. 

As bad as I needed the potential {$4000.00} Cash for  Keys to assist in moving and securing somewhere else to live, I agreed to the terms and the buyer increase his offer to {$83000.00} to match the appraised value, as requested. My realtor submitted said revised offer on XX/XX/XXXX, awaiting an affirmative response. 

On XX/XX/XXXX my realtor called Chase to follow up on the revised offer only to find that the property had been sold at auction, without her foreknowledge, the day before, on XX/XX/XXXX for {$64000.00}. This amount is $ XXXX less that we were told would be acceptable in our offer. In fact, the property was offered at auction with a minimum bid of {$63000.00}. 

So, Chase would not approve my modification which I was prepared to accept at approx. $ XXXX, ( according to a conversation with XXXX XXXX ), which would have included the {$5200.00} lien balance. Chase also did not accept the {$83000.00} cash only offer that met all the stipulated terms set by Chase representative XXXX XXXX. 

Instead, Chase chose to accept a {$64000.00} foreclosure sale offer, with the minimum bid not at $ XXXX ( as I was instructed ), but at {$63000.00} ; without notice to my realtor. 

I believe Chase misrepresented their intent throughout this loan modification process and was not negotiating in good faith with unnecessary procedural delays, causing my modification applications to expire, only to permit the short sale offer I provided ( at the appraised value ) to be undercut with a substantially inferior bid without notice. I am reviewing my options on how to proceed. 
Can someone tell how any of this makes good business or customer service sense? 

Does anyone care how customers, especially those in financial distress, are treated? 

At a minimum I would like to receive the previously mentioned {$4000.00} transition assistance. 

Is that possible? 
XXXX XXXX XXXX XXXX