Chase Bank sold home at auction for $100 while homeowner was in trial loan modification

Chase Bank sold home at auction while Florida homeowner was in a trial loan modification

In Lakeland, Jaimie S. Smith, 29, called her mortgage company, then Washington Mutual, in October 2008, when she realized she would get a smaller bonus, threatening her ability to continue the $1,250 monthly mortgage payments on her three-bedroom house.

In April, Chase Bank, which had taken over Washington Mutual, lowered her payment to $1,033.62 in a trial that was supposed to last three months.

Then, in October, a startling legal notice arrived in the mail: Chase had foreclosed on her house and sold it at auction for $100. (The purchaser? Chase.) “I cried,” Smith said. “I was hysterical.”

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Later that week came another letter from Chase: “Congratulations on qualifying for a Making Home Affordable loan modification!” When Smith frantically tried to overturn the sale, she was told that the house was no longer hers.

Later, she hired a lawyer, who is seeking compensation from Chase. A judge later vacated the sale. Chase is still offering to make her trial loan modification permanent, but Smith has already moved out and is conflicted about what to do.

“I could have just walked away,” she said. “If they had said, ‘We can’t work with you,’ I’d have said: ‘What are my options? Short sale?’ None of this would have happened. God knows, I never would have wanted to go through this. I’d still be in grad school. I would not have paid all that money to them. I could have saved that money.”
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Source: http://www.heraldtribune.com/article/20100102/ARTICLE/1021035/-1/NEWSSITEMAP

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