Texas Homeowner Sues Chase Mortgage for DECEIT

Texas Homeowner Sues Chase Mortgage for Loan Modification Deceit

posted by Alex Ferreras on March 9, 2011 in Mortgage News - LoanSafe.org

(LoanSafe.org) - On this case brought about on February 28, brought before the United States District Court, S.D. Texas, the Plaintiff was filing a lawsuit against Chase Home Finance.The story goes, in May 2005, Plaintiff and her husband had gotten a mortgage loan from Chase Bank in Harris County, Texas. According to court records, the note proving that the mortgage had been allocated to JPMorgan Chase Bank, N.A., and Chase Home Finance, LLC, was that they were engaged as the mortgage servicer.
The couple’s loan had gone into default after some time, according to records. After modification of the loans terms was unsuccessful, the foreclosure proceedings were gone forward with anyways. According to records, the couple have not reached the eviction stage yet, but these days this is a common thing to happen with the lenders. A similar well known case recently occurred with Bank of America.
The Plaintiff filed the lawsuit against Chase in Texas state court in an attempt to stop the foreclosure proceedings. She successfully had obtained a temporary restraining order from the Texas court. The homeowner in court made claims that the lender’s records are inaccurate, and that statements she has received from Chase are inconsistent. The Plaintiff alleges also that Chase failed to respect a Forbearance Plan Agreement, and had given her inappropriate promises that she would most definitely qualify for a HAMP federal program loan modification. This is another common practice by lenders that has recently gotten them in trouble.

For all the numbers of cases that enter the courts, successful prosecutions are extremely rare. Complaints must contain a number of factual allegations, as opposed to strictly legal conclusions. When there are well-pleaded factual allegations, a court should presume they are true, even if doubtful, and then determine whether they plausibly give rise to an entitlement to relief.
According to court records, the Plaintiff has admitted that the complaint she has filed with the courts was rather early or premature because no foreclosure has been completed yet. The case clearly was an impulsive action to attempt to avoid foreclosure as fast as possible, and was filed in state court where pleading requirements are less stringent.
The lawsuit was denied on the side of the Plaintiff and her husband, and was favored in the side of the defendant, Chase. According to court records, the prosecutor is given permission on or before March 28, 2011to file an Amended Complaint that satisfies the pleading requirements for complaints in federal court. Plaintiff shall allege the factual basis for each cause of action separately, and shall include only those causes of action recognized under Texas or federal law. She has yet to accomplish doing this so far, according to the court.