Legal Question in Consumer Law in 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.


Asked on 1/04/10, 11:03 am

1 Answer from Attorneys
Joseph Michelotti Michelotti & Associates, Ltd.

You signed a note and mortgage which required you to do certain things in exchange for receiving money. You are not doing those things so they are foreclosing. You can stay in the house for more than a year while they are foreclosing and your job situation may change. You do not have to make current mortgage payments while you are foreclosing

You could work on a short sale or continue to try to modify your mortgage. in any case you will have saved a year's worth of mortgage payments

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Answered on 1/16/10, 5:18 pm


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