Consumer complaint received 2015-05-28
Product: Mortgage — Other mortgage
Issue: Loan modification,collection,foreclosure — 
Company: JPMORGAN CHASE & CO. (CA)

I am appealing to the CFBP regarding unfair lending practices with Chase Bank. I hold a XXXX mortgage with Chase that I obtained in XXXX of XXXX when I purchased my home. I also have a XXXX mortgage used for expenses from a complete remodel. The combined balances are now approximately {$630000.00}. Due to the falling real estate market beginning in XX/XX/XXXX, like many Americans, my value has dropped substantially. I am underwater by at least {$110000.00} at this point. Prior to the drop the home appraised to XXXX in XXXX of XXXX, before the real estate market crash. 
When I acquired the purchase money XXXX mortgage with Chase, there was a delay in the closing of my former home. This resulted in the broker advising me at the last minute that I was stuck with the XXXX mortgage with a three-year pre-payment penalty on the XXXX of approximately {$14000.00} and a variable rate starting at 6.40 % on a 10-year interest-only loan. I was assured with my credit history that refinancing would be no problem and that was completely my intent. I am XXXX years to retirement and envisioned this would be the last house I would own. The 10 years is up effective XXXX XXXX and I will owe full principal and interest, causing my payment to rise over {$980.00} per month which I can handle as required. 
I have maintained a perfect pay payment history on my mortgages and all other credit obligations and maintained all property tax and insurance payments, Chase has advised me that my rate is tied to the XXXX XXXX XXXX 6-Month Libor Index plus a margin of 5.725 % and the rate can climb in XXXX change period an additional 5.00 % to 11.40 % from the current rate of 6.40 %, up to a maximum rate of 12.90 %.. 
I contacted Chase to request a Loan Modification to stabilize the interest rate at 6.40 %. My goal is to fulfill the remaining principal and interest payments due for the remaining 20 years left on the loan note. Under the present rate terms my payment could virtually double and that I can not afford. Since the home is underwater, I can not refinance the home or sell it to stop this process, I wish I could as I originally intended and if the value was there I would have no problem doing so at a much lower interest rate due to my credit history. I spoke with an XXXX in the Chase modification department on XXXX/XXXX/XXXX and requested that my interest rate be stabilized, just the rate. If the rate jumped another 5.00 % -6.50 % % on top of the 6.40 % I am paying now it would be impossible. XXXX advised me that Chase is not approving any such requests from other borrowers that have made the same request, all are being denied. They are only considering this for borrowers behind and in trouble now. I explained that I am attempting to be realistic and proactive to address this potential problem before it becomes a big one. XXXX then again reiterated that she has seen all such requests coming in like mine being denied by Chase. I believe it is an unfair practice to not consider such requests from responsible borrowers who are being proactive and have a desire to meet their mortgage obligations and stay in their home. I believe such Lender behavior creates instability in real estate values and seeks to ruin the credit standing of responsible borrowers and rack-up late fees and charges, especially given the most recent mortgage crisis it is irresponsible. While the Chase letter provides the option of requesting help, it is not in earnest as I experienced first-hand. I am not requesting a lower payment or forgiveness of any portion of my loan or a change in term. I am simply asking for them to stabilize my rate of 6.40 %. Can the CFBP help me? I am also concerned about others like myself that Chase is turning away.