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Chase Mortgage in Foreclsoure: Deed In Lieu or Lawyer Up?


yragcom1
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This is my situation: I'm in California. I've been foreclosed on, and I've delayed my trustee sale for the last two months, awaiting my loan mod from Chase. Got a loan mod denial letter the other day. They offer the option of either a deed in lieu or short sale. I've been reading about the downfalls of both here, and I really want to lawyer up to either force Chase to accept a mod plan, and/or take the next 6-12 months to clear up my credit a bit more before I move.

I can delay the trustee sale through the verification process for at least another few months, but I also think that I may have a chance to contest my modification denial. Tell me what are my options at this point? Do I need top answer Chase within the next 30 days if I want to accept a deed in lieu? My mortgage is upside down, and I have a first and a second, but the second was sent to a collection agency over a year and a half ago, and not even the first would cover the current value of the house.

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This is my situation: I'm in California. I've been foreclosed on, and I've delayed my trustee sale for the last two months, awaiting my loan mod from Chase. Got a loan mod denial letter the other day. They offer the option of either a deed in lieu or short sale. I've been reading about the downfalls of both here, and I really want to lawyer up to either force Chase to accept a mod plan, and/or take the next 6-12 months to clear up my credit a bit more before I move.

I can delay the trustee sale through the verification process for at least another few months, but I also think that I may have a chance to contest my modification denial. Tell me what are my options at this point? Do I need top answer Chase within the next 30 days if I want to accept a deed in lieu? My mortgage is upside down, and I have a first and a second, but the second was sent to a collection agency over a year and a half ago, and not even the first would cover the current value of the house.

Google "Foreclosure Defense Nationwide"...these attorneys may be able to assist. Chase bank( and many others) has been known to submit false documents. Their contact information is at their web site.

Quote:

"Foreclosure Defense Nationwide (FDN) is a resource which provides free and public information as to issues and developments in the defense of foreclosure actions throughout the United States, including the filing of legal actions, judicial rulings, generic forms, and articles on various foreclosure defense matters. FDN also provides links to resources such as auditors, attorneys, mediators, and real estate professionals to assist those facing either the threat of foreclosure or an actual foreclosure proceeding."

End Quote

You have to be careful about accepting any terms and conditions presented by a mortgage company in matters such as this, as you might find later on down the road that they will sue you on a "deficiency notice" when the home is re-sold at a loss. Please have an attorney assist you in this matter to prevent getting stung !

Edited by Noway
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yragcom1, please read :

"FROM THE OFFICE OF THE CONTROLLER OF THE CURRENCY

NR 2011-47

FOR IMMEDIATE RELEASE

April 13, 2011

Contact: Robert Garsson

(202) 874-5770

OCC Takes Enforcement Action Against Eight Servicers for Unsafe and Unsound

Foreclosure Practices

WASHINGTON — The Office of the Comptroller of the Currency today announced formal enforcement actions against eight national bank mortgage servicers and two third-party servicer providers for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing.

The eight servicers are Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife Bank, PNC, U.S. Bank, and Wells Fargo. The two service providers are Lender Processing Services (LPS) and its subsidiaries DocX, LLC, and LPD Default Solutions, Inc.; and MERSCORP and its wholly owned subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS).

"These comprehensive enforcement actions, coordinated among the federal banking regulators, require major reforms in mortgage servicing operations," said acting Comptroller of the Currency John Walsh. "These reforms will not only fix the problems we found in foreclosure processing, but will also correct failures in governance and the loan modification process and address financial harm to borrowers. Our enforcement actions are intended to fix what is broken, identify and compensate borrowers who suffered financial harm, and ensure a fair and orderly mortgage servicing process going forward."

The enforcement actions require the servicers to promptly correct deficiencies in residential mortgage loan servicing and foreclosure practices that examiners identified in reviews conducted during the fourth quarter of 2010. The actions require the servicers to make significant improvements in practices for residential mortgage loan servicing and foreclosure processing, including communications with borrowers and dual-tracking, which occurs when servicers continue to pursue foreclosure during the loan modification process. The enforcement actions require the servicers to ensure that foreclosures are not pursued once a mortgage has been approved for modification and to establish a single point of contact for borrowers throughout the loan modification and foreclosure processes. In addition, the actions require servicers to establish robust oversight and controls pertaining to their third-party vendors, including outside legal counsel, that provide default management or foreclosure services.

The OCC's actions also require each servicer to engage an independent firm to conduct a multi-faceted review of foreclosure actions between January 1, 2009, and December 31, 2010. This requirement includes a comprehensive "look back" to assess whether foreclosures complied with federal and state laws, whether foreclosures occurred when grounds for foreclosure were not present, such as when loans were performing, and whether any errors, misrepresentations or other deficiencies resulted in financial injury to borrowers. The actions also require each servicer to establish a process for borrowers who believe they have been financially harmed by such deficiencies to make submissions to be considered for remediation. Each servicer must also submit a plan to remediate all financial injury to borrowers caused by any errors, misrepresentations, or other deficiencies identified in the independent consultant's findings.

The OCC based its enforcement actions on the findings of examinations conducted as part of the interagency horizontal reviews undertaken by the federal banking regulators in the fourth quarter of 2010. Examinations of these eight national bank servicers identified significant weaknesses in mortgage servicing and foreclosure governance that resulted in unsafe and unsound practices. The scope and degree of these practices differed among the servicers; however, based on the sample of files reviewed by OCC examiners, borrowers in the sample were seriously delinquent at the time of foreclosures and servicers held the notes and documents required to foreclose. A summary of the findings of the interagency reviews is available in the Interagency Review of Foreclosure Policies and Practices, which was produced by the OCC, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision.

The enforcement actions do not preclude determinations regarding assessment of civil money penalties, which the OCC is holding in abeyance.

Related Links

Interagency Review of Foreclosure Policies and Practices (PDF)

Consent Order for Bank of America (PDF)

Consent Order for Citibank (PDF)

Consent Order for HSBC Bank (PDF)

Consent Order for JPMorgan Chase Bank, N.A. (PDF)

Consent Order for LPS; DocX, LLC; and LPD Default Solutions, Inc. (PDF)

Consent Order for MetLife Bank, N.A. (PDF)

Consent Order for MERSCORP and Mortgage Electronic Registration Systems, Inc. (MERS) (PDF)

Consent Order for PNC Bank, N.A. (PDF)

Consent Order for U.S. Bank National Association, U.S. Bank National Association ND (PDF)

Consent Order for Wells Fargo Bank, N.A. (PDF)

E-mail this news release E-mail this news release

Accessibility | Web Site Privacy Policy | Privacy Impact Assessments | Contact Us | Department of the Treasury | USA.gov | No Fear Act | Freedom of Information Act

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in California. .

I do not know your complete situation - you are not telling us the complete picture. Other than Chase being next to impossible to work with. What was your hardship that caused you to stop making your payments?

My firm handles 49 states for loan litigation - California is the only state we do not handle. Your state laws were designed to protect home owners from being scammed. Looking at it another way in my opinion, I think your laws were written to protect the profits of Lenders.

Lawyers throughout California who work on loan modifications cannot receive any money until the work is complete. I have heard there are a few that do third party out of state billing, to go around your state ruling.

I am seeing there are many who feel the same way I do about your laws written to protect the interests of your mortgage company's. This week the California bill SB 729, would of required a lender to fully evaluate a borrower for a loan modification, this unfortunately failed to pass...

The option of either a deed in lieu or short sale. Since your state is Non Judicial and Deficiency Judgements are not practical. A short sale is the cheapest way out, but that is not going to stop the trustee sale.

If they are offering a Deed in Lieu - this is better much option, because it is forcing them the prove there is no affordability and there is an attempt to sell the property. Being that your are "Underwater", this is going to probably add to the amount of time you are going continue living there.

You say you have been foreclosed upon, then you say there is a trustee sale. I have to ask - what have you done up to this point to prevent your bank foreclosing on you? Have you gone to any support groups, are spoken to any legal aid? What have they told you?

Your question about your second mortgage - in lien holders position, they are behind the first mortgage. What happens many times the first lender will pay the second lender a small amount in order to have a free and clear title after a foreclosure. After your foreclosure - the first lender cannot hold you responsible for after more then the value of the house, but the second lender can possibly take you to civil court for a judgement.

I literally speak to people all over the country - the thing I hear most causing people to go late with their mortgage is "I lost my job and my mortgage company is not working with me". Point - if you want to keep your house, you need to show some type of affordability.

Again I do not know what lead you into this position as far as your loan situation. If you had a high interest rate or one of those designer loans, I would think the success of getting your loan modified would be better. Compared to having a fixed rate loan at a low rate. A bank not getting paid the money owed to them - is only going to work with you so long before the invertible happens.....

Sorry if I am sounding like I'm being ambiguous with you - just asking hard up-front questions..

Edited by 2ndTimeAround
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