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Fraudlent marketing by mortgage company

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shelly1971

Junior Member
What is the name of your state (only U.S. law)? Illinois

I am trying to identify if my mortgage company has committed a tort against me as a consumer and if I have any legal recourse against them. Twice in 2009 my husband and I applied for a Home Loan Modification. The first time was after I suffered a reduction in salary and my husband became unemployed and the second after I became unemployed and my husband still unemployed. Both applications were denied. 1st denial indicated our income exceeded their criteria and the 2nd time denial was based on their remarks of "unemployment is temporary" therefore you dont qualify. On their webpage, which I printed and now they've changed, they tout mortgage assistance under modification is available if you have suffered employment loss, reduction of income, unexpected increased expenses and so on. My husband has no unemployment benefits then or now and my monthly benefits barely cover the mortgage payment therefore leaving no excess funds to pay other liabilities or living expenses. The mortgage company did indicate another assistance program was available for Freddie Mac homeowners and then put me in touch with a refi division which obviously employment is required to apply. Chase also told me that as soon as we are no longer able to make our payments, they will move forward with foreclosure. We have yet to miss a payment, and their website also touts that they offer assistance to homeowners to help avoid going past due. Based on this preliminary account of the matter, do you feel they have wronged us and would suit be plausible, class action or otherwise? Another note, I did request Chase to provide me with a list of criteria required for loan modification since their website inaccurately portrays allowances however they refused my requested indicating they do not have to reveal their business practices since they returned all government funds they are not mandated to such requests.
 


sandyclaus

Senior Member
What is the name of your state (only U.S. law)? Illinois

I am trying to identify if my mortgage company has committed a tort against me as a consumer and if I have any legal recourse against them. Twice in 2009 my husband and I applied for a Home Loan Modification. The first time was after I suffered a reduction in salary and my husband became unemployed and the second after I became unemployed and my husband still unemployed. Both applications were denied. 1st denial indicated our income exceeded their criteria and the 2nd time denial was based on their remarks of "unemployment is temporary" therefore you dont qualify. On their webpage, which I printed and now they've changed, they tout mortgage assistance under modification is available if you have suffered employment loss, reduction of income, unexpected increased expenses and so on. My husband has no unemployment benefits then or now and my monthly benefits barely cover the mortgage payment therefore leaving no excess funds to pay other liabilities or living expenses. The mortgage company did indicate another assistance program was available for Freddie Mac homeowners and then put me in touch with a refi division which obviously employment is required to apply. Chase also told me that as soon as we are no longer able to make our payments, they will move forward with foreclosure. We have yet to miss a payment, and their website also touts that they offer assistance to homeowners to help avoid going past due. Based on this preliminary account of the matter, do you feel they have wronged us and would suit be plausible, class action or otherwise? Another note, I did request Chase to provide me with a list of criteria required for loan modification since their website inaccurately portrays allowances however they refused my requested indicating they do not have to reveal their business practices since they returned all government funds they are not mandated to such requests.
I don't understand why you are considering pursuing action here - because they denied both applications for loan modification? Each bank has their specific criteria for granting modifications to ensure that all people who really need them can get them. Your income exceeded their program guidelines when your salary was reduced. And you may not have been unemployed long enough to qualify since your job loss. Unemployment benefits are designed as temporary income to cover until you become re-employed.
It sounds to me like you went right out after getting your salary reduced and started applying for that loan modification even though you may not have needed it. And there is still the possibility that you may find employment soon to replace those unemployment benefits. Plus your unemployed husband could find a job soon as well.

As I said, a loan modification isn't a given just because your hours are reduced or you lose a job. It's intended as a final solution to avoid foreclosure, and you might just be trying to get a little relief that you are not really entitled to yet. When you're really in trouble is the time to apply again - when foreclosure is your only other option. And you don't sound like you're there yet.
 

shelly1971

Junior Member
First are either of you licensed attorneys who are currently allowed to practice law and if so, in what state(s)? Secondly, my request was for you to cite law not to cast judgment on the merit of a situation. Thirdly, read the question, and simply answer it, which neither reply addressed.

If in fact either of you are legal advocates, then I suggest you heed law101 as a legal professional, your first rule of ethics is not to be bias and excise professional conduct at all time. Do not attempt to interpret a short hand version of consumers quest for quick answers, into what you believe is or is not sincerity, and without clearly citing any statues of law your attempt as an advise columnist may be better suited for another forum of blog.

This matter is closed.
 

Zigner

Senior Member, Non-Attorney
First are either of you licensed attorneys who are currently allowed to practice law and if so, in what state(s)? Secondly, my request was for you to cite law not to cast judgment on the merit of a situation. Thirdly, read the question, and simply answer it, which neither reply addressed.

If in fact either of you are legal advocates, then I suggest you heed law101 as a legal professional, your first rule of ethics is not to be bias and excise professional conduct at all time. Do not attempt to interpret a short hand version of consumers quest for quick answers, into what you believe is or is not sincerity, and without clearly citing any statues of law your attempt as an advise columnist may be better suited for another forum of blog.

This matter is closed.
The answers you received were correct and on-point. I'm sorry if you don't like them. The refund desk is adjacent to the exit.




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I sense great danger Zigner agreed with me when I was a bit abrupt.

Why is the only thing I think to ask is, Lord Vader, am I on my way to becoming a Senior Member?
 

latigo

Senior Member
Am I on my way to becoming a Senior Member?
A doctorate in law and passing a bar examination might help!

What is there in the wording, “Freeadvice Legal Forum” that you fail to comprehend, HP?
 

sandyclaus

Senior Member
The Story Behind Loan Modification

My experience has been in a Loss Mitigation department of a major mortgage banking firm. I have worked in collections, trying to get people to pay their loans when they fell behind, and in a Home Saver program that offered last-ditch efforts to help save homeowners who would otherwise be facing foreclosure and loss of their homes. I witnessed those people who had less than perfect credit allow their payments to get so far behind there was little we could offer that could get them back on track. And then there were those people with excellent credit history who experienced major financial losses - death of a spouse, medical issues, hurricane victims. Those people had little to no income and there was not much hope they could return to their good payment history given their situation that wasn't changing anytime soon.

I agree that banks should not just give away a loan modification to everyone who may miss a payment or two, and whose financial picture has changed little from where they were when the loan was granted in the first place. These folks have many other options to restore their incomes before resorting in something that will cause the banks a reduction in rightful revenue from their mortgage payments. Save the last ditch efforts for those who have no other options and who will lose the homes they worked so hard to keep while they could.
 
Oh dear, arrogant, latigo, two things. First, my current skills and experience seem to give accurate answers, so, what's your point? Second, my only claim is merely a facility with Google. I think it's useful to HELP those who come here and come from the teach a man to fish over feeding him a fish school. However, do you really think it's easy to look things up without knowing what to look up?
 

shelly1971

Junior Member
At least your sense of danger is on point, that is the only near accurate statement contained within your blog. I am a legal professional, who has the education and legal credentials to call your bluff. Your "advice" and your forum are more of a Ann Landers platform. You all seem very comfortable citing historians quotes, which I presume gives you that level of level of arrogance and Googled knowledge that really helps no one who turns to this forum for an ethical word of suggestion.

Here is a quote you can use: Illegal practice of law.... ever hear that one before?
 

Zigner

Senior Member, Non-Attorney
At least your sense of danger is on point, that is the only near accurate statement contained within your blog. I am a legal professional, who has the education and legal credentials to call your bluff. Your "advice" and your forum are more of a Ann Landers platform. You all seem very comfortable citing historians quotes, which I presume gives you that level of level of arrogance and Googled knowledge that really helps no one who turns to this forum for an ethical word of suggestion.

Here is a quote you can use: Illegal practice of law.... ever hear that one before?
You are a legal professional? Righttttt... :rolleyes::rolleyes:


Please feel free to pick up your refund on your way out. Good day...and don't let the door hit you in the arse...
 

sandyclaus

Senior Member
In my defense...

I never claimed to be an attorney or other legal professional, nor was the information I offered something one could construe as legal advice.

As a legal professional, why are you coming to an admittedly free advice forum to post your questions and ask for legal advice anyway? Have you forgotten how to do your own legal research? Alienated too many of your professional associates to get them to give you free advice? Too cheap to pay for it?

You got answers to your questions from the non-professional members of this forum. If you don't like the answers, you are free to hire your own attorney and get the same answers.

On a side note: I wonder why a legal professional would be out of work. Seems to me there is plenty of legal work to be had out there if you want to work. Plus, why is the husband not working or getting unemployment yet?
 

mullison

Junior Member
It may be that the mortgage company committed a fraud. I'm not sure we have enough facts. But even if they did, you have to answer the question of what your damages were.

There are four elements to a cause of action for a tort: duty, breach of duty, causation, and injury.

First, what duty did the company have to you?

Second, how did they breach that duty?

Third, was that breach the cause of your injury?

Fourth, what was your injury?

If you have answers for all of them that point back to the liability of the company, you might have a case.

Next, you have to sue them. You could do it yourself, I suppose. But if you need a lawyer, you are either going to have to cough up significant legal fees, or find someone willing to take this case on a contingency basis. If this case walked through my door, I'd probably decline it.

You still haven't defined your injury. And you haven't explained how the company caused it.
 
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