on June 1, Davis says he received a letter from Chase saying his modification was canceled -- because, the bank told him, he himself had
written to withdraw his request.
Davis, this made no sense. His path "hacking through the loan modification jungle"
was featured on KALW radio earlier this year. Davis (whose name was
changed to protect his privacy) has a steady job as a garbage
collector, but says he missed his mortgage payments in order to pay for
his mother-in-law's funeral. The missed payments put his much-loved
Bayview home into jeopardy.
After months of back-and-forth with Chase, Davis thought he had become one of the lucky ones. After his modification was approved he Fed-Exed his final approval documents
to Chase in April. He says he had even called the bank to personally
confirm the delivery, and was told that all of his documents were in
order. He had begun making his new loan payments.
Now, after months of paperwork and payments, Chase was telling him that he had canceled his own hard-won modification.
time he called the bank for an explanation, he received a different
answer, Davis says. He was told that the Chase had never received his
confirmation paperwork, despite the Fed-Ex confirmation slip and the
phone call he made to ensure that his forms had arrived safely. He was
also told the letter was probably just a computer-generated fluke, and
that the issue should clear up in a few days.
Mack-Westrom, Davis' housing counselor at the non-profit San Francisco
Housing Development Corporation, called the situation "utterly amazing."
called Davis "a model borrower," a person who "crossed every t, dotted every i" throughout the loan modification process, and who had
proved he could keep up with his new loan payments.
On top of
that, Mack-Westrom said, Davis' case had received special attention
from a Chase representative after his story aired on the radio.
Now, even though Davis has meticulous documentation of his entire process, Chase is asking him to start again from scratch.
"It's in the poorest of bad faith" on the part of the bank, Mack-Westrom said.
Gary Kishner, a spokesman for J.P. Morgan Chase, said he was looking into Davis' situation.
stories of the home loan modification process have become commonplace,
not only in Mack-Westrom's office, but across the country.
In order to secure a loan modification, homeowners have had to struggle
through a confusing process, with banks representatives frequently
losing paperwork, making mistakes, delaying decisions, giving
them contradictory advice, and even denying loans for bogus reasons.
the past months, JP Morgan Chase in particular has come under scrutiny
for denying loans to homeowners for reasons that the Treasury
Although the Treasury Department has set aside $39.9 billion to help homeowners avoid foreclosure -- including nearly $6 billion
to JP Morgan Chase subsidiaries alone -- only $190 million of that has
been spent as of May 2010, according to the watchdog organization ProPublica, which has been coordinating media reports on the struggling federal program. That's because only 20 percent of the estimated eligible homeowners have been approved for a permanent loan modification.
Photo | Sercasey
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