According to court documents, Bethanne did as she was told, but instead of offering her the modification she sought, the bank filed for foreclosure.
Poland, OH (PRWEB) July 18, 2014
Bethanne Wasko, of Poland, Ohio, sought the help of the Dann Law Firm after she had received a foreclosure notice while in the process of attempting a loan modification.
According to court documents, Bethanne had always made the payments on the adjustable-rate mortgage she had through JP Morgan Chase on her home, until she sought a loan modification and was told by Chase that she would need to stop making payments in order to be eligible. Bethanne did as she was told, but instead of offering her the modification she sought, the bank filed for foreclosure (Case #: 4:14-cv-01544-BYP, Complaint attached).
The Dann Law Firm successfully defended Bethanne against this action. According to court documents, both parties agreed that the foreclosure would be dismissed and Bethanne was instructed to submit a loan modification application. Again, Bethanne followed directions. She submitted a complete loss mitigation application on March 26, 2014 (Case #: 4:14-cv-01544-BYP, Complaint attached).
According to court documents, Chase never responded. Instead, Chase refiled for foreclosure on June 5, 2014 (Case #: 4:14-cv-01544-BYP).
The Dann Law Firm is alleging to the Eastern Division of the United States Northern District Court of Ohio that Chase is in violation of new Frank-Dodd Wall Street Reform and Consumer Protections Act, the Real Estate Settlement Procedures Act and the Truth in Lending Act and is pursuing one of the first actions in Ohio citing these recent reforms.
Under the new regulations, a servicer cannot file for foreclosure when a modification application has been filed. Furthermore, the servicer is required to promptly review any modification filed 45 days or more before a foreclosure sale and notify the borrower if the application is complete within five days of the filing. Finally, a servicer that has received a loan modification application is required to evaluate the borrower for all mitigation options and provide written notice of which options the borrower may be eligible to receive.
In Bethanne’s case, after filing for foreclosure against her, Chase twice asked for more time to review the loan modification application, according to court documents. These Court documents show, that both those extension deadlines have passed and Chase has neither responded to her loan modification request nor dismissed the new foreclosure filing against her (Case #: 4:14-cv-01544-BYP, Complaint attached).