Consumer complaint received 2025-01-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
After our home was completely consumed in a wildfire ( XX/XX/XXXX ), the homeowners ' insurer XXXX XXXX XXXX ) tendered a check covering both of the mortgages ( 2 ; {$27000.00} & {$210000.00} ) held by Chase against the subject property ( totaling {$610000.00} ), we ( my husband XXXX XXXX XXXX is also a listed homeowner ) presented that {$610000.00} check at the XXXX, CA XXXX XXXX XXXX Chase Bank on XX/XX/XXXX to branch manager XXXX XXXX, which he/they refused to accept and negotiate, except upon their ( unlawful ) conditions. ( A copy of their terms and conditions in letter form is attached hereto. ) In short, they would not agree to negotiate the check unless we agreed to forego the nearly {$400000.00} due us under the check. They would only aver -- not guarantee -- that they would " later '' release ~ {$40000.00}, with the balance to be held by Chase Bank. As such, even though they had presented us with the payoff balance on both loans, their refusal kept us from proceeding from this catastrophe. Eventually, we were required to impose on XXXX XXXX to alter the payoff check ( which they were thankfully willing to do ). This delayed matters further. On XX/XX/XXXX, we presented Chase Bank ( at the XXXX XXXX XXXX branch office of Chase ) with the endorsed ( by us ) check in the amount of {$230000.00}, together with a prepared receipt that also outlined the time limits and other conditions California state law imposed upon Chase. ( A copy of the check with our endorsement, and a copy of the fully-executed receipt signed by acting branch manager XXXX XXXX is attached hereto. ) As of the date of this complaint, the only further contact by Chase has been several telephone calls to advise that they had apparently lost the tendered check! UPDATE : As of XX/XX/XXXX, Chase has now applied, from the XXXX tendered ( the exact amount Chase stated -- in writing -- that was the full payoff of both loans ) to ONLY satisfy the lesser of the two loans ( {>= $1,000,000} ), and kept the balance ( {$210000.00} ), without advising us why. They then reported us to collections agency ( ies ) as DELINQUENT. THIS FRAUD MUST BE STOPPED.

CHRONOLOGY : 1. In XX/XX/XXXX, XXXX XXXX and XXXX XXXX XXXX ( hereinafter, homeowners ) entered into a purchase agreement to buy the subject property, commonly known by the street address XXXX XXXX XXXX, XXXX CA XXXX. The property consisted of XXXX acres, with a private driveway, and a residence house of XXXX square feet. There was an attached three-car garage ; there was a six-stall horse barn ( XXXX sq. ft. ) ; the property was fully fenced and cross-fenced. The then-seller was a trust established for the surviving children of former homeowner XXXX XXXX XXXX then recently deceased. In addition to a sizeable cash down payment, homeowners arranged for first trust-deed financing through XXXX XXXX XXXX ; in addition, the sellers agreed to carry a second note, with a balloon payment due in several years. Escrow closed, and homeowners began possession of the subject property as their principal residence, which continued to XX/XX/XXXX ( and continues, notwithstanding the catastrophic events of XX/XX/XXXX ). 
2. Homeowners were never delinquent on payments of the first trust-deed.

3. Thereafter, in order to pay the balloon payment to the seller-trust, a second loan was obtained through XXXX XXXX  ( also called a home equity line of credit or HELOC ). 
4. Homeowners were never delinquent on the HELOC loan.

5. Between XX/XX/XXXX and the end of XXXX, XXXX XXXX XXXX experienced financial trouble, and was acquired by Chase Bank ( many a.k.a., listed hereinafter as Chase ). 
6

. Homeowners have never been delinquent in any payments to Chase Bank.

7. Some 27 years after establishing the subject property as their principal residence, on XX/XX/XXXX a wildfire ( termed by XXXX as the XXXX XXXX ) swept through and totally consumed all structures, most motor vehicles, and some animals owned by homeowners on the subject property. This was deemed by the homeowners insurance ( XXXX XXXX ) to be a total loss. 
8. Thereafter, homeowners sought from Chase and were granted a forbearance allowing payments to Chase to be stayed.

9. In XX/XX/XXXX, XXXX XXXX issued a check in the amount of {$610000.00} payable jointly to homeowners and Chase.

10. Chase advised homeowners of the payoff balance due to extinguish the first trust deed and the HELOC ( XXXX for both loans combined ). With that representation, homeowners presented the {$610000.00} check to Chase at their XXXX CA branch office. Branch manager XXXX XXXX refused to accept this tender, unless homeowners would stipulate to Chase terms and conditions that Chase had/has no possible interest in ( such as Chase being an overseer of the monies, to only release the sums rightly due homeowners if homeowners met Chases arbitrary decision to force a site rebuild, under Chase-approved vendors. ( Again, Chase has/had XXXX legitimate interest in forcing homeowners to rebuild. They were being tendered FULL payment of the outstanding loan balances! ) 11. With Chase seeking unwarranted intrusion into homeowners lives, property, and decision-making, Chase ( solely ) caused payment in full of the two loans to be delayed. Finally, XXXX XXXX came to homeowners rescue, by reissuing two checks, with one being for the total amount of full repayment of both Chase loans ( under a newly-created payoff amount -- which had increased due solely to Chases intransigence -- the total of both the first trust deed and the HELOC was advised by Chase to be the total of {$230000.00} ).

12. On XX/XX/XXXX, homeowners presented a check ( endorsed by homeowners ) in the amount of {$230000.00} to XXXX XXXX, acting branch manager of Chases XXXX XXXX XXXX branch. The check was ( finally ) accepted, and XXXX XXXX signed a receipt prepared by homeowners ( copy attached hereto ), and was gracious enough to present homeowners with a copy of the endorsed check ( copy attached hereto ). 
13. Within about 10 days of that presentment ( XX/XX/XXXX ), Chase began telephoning homeowners multiple times, ostensibly for help in locating said check!

14. On XXXX XXXX XXXX, Chase left a telephone message seemingly advising that they had applied the {$230000.00}. As of XX/XX/XXXX, Chase advised in writing -- that of that {$230000.00} tendered to Chase by homeowners ( the exact amount Chase stated -- in writing -- that was the full payoff of both loans ), they had unilaterally decided to ONLY satisfy the lesser of the two loans ( {>= $1,000,000} ), converting the balance ( {$210000.00} ), without advising homeowners why. Chase then reported homeowners to collections/credit agency ( ies ) ( printout from XXXX attached hereto ). 
XXXX5. Chase has not advised homeowners why ( a ) they applied the full payoff amount only to one loan and why it was to the lesser of the two loans ; ( b ) why they decided to report homeowners to a collections agency/credit reporting bureau as delinquent. ( See 8-12, including Chase agreeing to forbearance ; Chase causing needless delay, etc. ) 16. On XX/XX/XXXX at XXXXXXXX XXXX., homeowners contacted Chase in response. Reminding Chase that the account ( a ) was in forbearance; and ( b ) that FULL payment had been tendered ( and signed for by Chase ) on XX/XX/XXXX ( e-mail printout attached ). 
17. On XX/XX/XXXX at XXXX XXXX., XXXX from Chase responded with an e-mail that must be read to be believed ( printout attached ). At no time did Chase comply or even seek to comply with CA Civil Code 2954.5.

Company response to consumer: Closed with non-monetary relief