Prevent Foreclosure Help: Another Big Bank Not Playing by the Rules — If Your Mortgage is With Chase, You’re Screwed

Just yesterday, I was talking to a friend of my — a Navy veteran who’s done two tours in the current war no less — about his home loan. He’s been trying to refinance his mortgage off an on for the last year and a half or so. But, because he’s underwater on his home, of course, that’s been the big stumbling block.

Yesterday, he told me that his Chase, who is the lender on his home loan, had finally agree to modify (not refinance, modify) his mortgage. He showed me the modification package they sent him and said the Chase representative said:

You’re the perfect candidate for our mortgage modification program.

Even though he’s gainfully employed (same company for 14+ years) and has excellent credit, I said:

Hmm, I’m surprised because I know you’re underwater (just like a lot of other homeowners in his area area)). Just don’t celebrate until the papers are signed.

I smelled a rat. So imagine my nonsurprise when I ran across this CBS news story, Chase’s Foreclosure Disgrace. Even though — by Chase’s guidelines — the three homeowners featured in the story should have qualified for permanent home loan modifications, they were denied. Not only that, they were eventually foreclosed on.

To Stop Foreclosures, Homeowners Sue Lenders

But, these gutsy homeowners are not taking things lying down. They’re fighting back. With assistance from the  Urban Justice Center, a legal nonprofit agency in New York, they’ve filed suit in federal court in Brooklyn to force Chase (and hopefully other big home loan lenders like it) to do the right thing. Good for them!

As one homeowner who’s now facing foreclosure featured in the article states:

The Obama administration’s [prevent foreclosure] program was supposed to give people like me a lifeline and a chance to save our homes. But if the banks won’t play by the rules, what else are we supposed to do?

If you’re the average Joe out there facing foreclosure — and you’re hoping to work something out with your bank, as I told my friend, don’t hold your breath until the papers are signed. Even when you hold up your end of the bargain — there’s nothing that says your lender will.

Why Banks are Not Playing Fair When It Comes to Modifying Home Loans and/or Refinancing Mortgages for Homeowners Facing Foreclosure

It’s quite simple . . . there’s nothing or nobody that’s MAKING them play fair. Again, to quote the aforementioned article:

. . . the Obama Administration’s approach to foreclosure prevention . . . depends entirely on the banks voluntarily (emphasis added) doing the right thing. [But of course] . . .nothing will change until banks are forced (emphasis added) to do the right thing.

The “Bait and Switch” Campaign Big Banks are Running on Homeowners Who are Desperately Trying to Stop Foreclosure

This is but further proof that big banks — the very ones that we the taxpayers bailed out — have no interest in helping homeowners prevent foreclosure. They seem to be running a ”bait and switch” campaign that squeezes as much money out of struggling homeowners as they can before they officially foreclose on them.

Otherwise, why would the Chase homeowners be told they met all the guidelines (which included making payments for a certain amount of time), THEN be told that their home loan modifications were denied?

Care to explain that Mr. Chase Bank Home Loan Modification Specialist?

More Proof that Big Banks Have No Interest in Helping Hoemowners Stop Foreclosure

Get more seemingingly infallible proof that big banks have no desire to help homeowners prevent foreclosure.

P.S.: Start a Business Cleaning Foreclosed Properties. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.