Mortgage Horror Stories
Mortgage Horror Stories
Thank you for visiting the Mortage Posting section of ChaseBankSucks.com
Below are some of the comments posted since the website's inception in June 1998.
Prepare to be shocked.
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Chase Bank Sucks HOME
Comments:
I refinanced my home through Crossland Mortgage with a rate of 6 5/8 15-year, loan amount of $208,000. My house was appraised at $247,000 which meant that I would have a 82% loan/value; so, I'd have PMI.
No sweat. In around 4 months, I'll pay down the principal and be at 80% loan/value to get rid of the PMI and Crossland Mortgage verified they would allow PMI to be dropped at that time.
Then, I get "sold" to Chase Manhattan. And guess what!? You HAVE to be with Chase making payments minimally for 24 months before you can EVEN HAVE THE PMI REMOVED!! And to make matters worse, Chase Manhattan had a class action suit of improprieties with regards to the PMI (1-888-285-3609 for info.).
As a result of the settlement for all loans made AFTER July 1, 1999; if you are paying PMI and you are at or below 80% loan to value, YOU DON'T NEED TO HAVE 24 MONTHS OF PAYMENTS to have the PMI dropped!!!
So when I called them after the class action settlement, they said I don't qualify.
I didn't even get my loan with you Bozos in the first place!! Then you tell me I have to pay PMI for a FULL 24 calendar months!! You get sued for this VERY THING, and you idiots STILL WANT 24 MONTHS from me of payment history??!!??
AMAZING!!!
Name:Russ Rogers
Comments:
We've owned our new home for just over a year now. When we initially bought this home, We used a local mortgage company. But after just one payment, they sold the mortgage to Chase. I've been paying the price ever since.
Recently, our local school taxes were due. Chase paid them out of our escrow. However, our school taxes only equated to $1271.00 which Chase actually paid, but Chase sent us a letter saying that the taxes were actually over $3300.00!!!! And that we were now $2000 in debt to them! Our payments were subsequently raised over $400.00 a month to compensate for THEIR ignorance. We've spent a couple of weeks on the phone with them and waiting for their "investigation" to end and our payments to return to normal. So far we have received NO phone calls, NO admittance that they made an error, and NO apology.
Wouldn't you think that in a "customer oriented" world like this that Chase would wilt and die? I'd like to quote from a letter that someone wrote about America West when they started "screwing" their passengers in a similiar manner:
"Dear Village Idiot,
May your airline go belly up as soon as possible so a more qualified group can assume your routes."
ARGH!!!!!!!!!!!!
Name:Scott Smith
Comments:
Regarding Chase Manhattan Residential Mortgage Corporation:
They paid the taxes on another house with a vaguely similar address (but much higher tax rate)and sent me a new payment book with my monthly amount roughly doubled to make up for the mysterious increase in tax payments. After the problem was identified, they promised to fix it, but never did, despite repeated calls from myself. Letters went unanswered.
Next thing I know, the tax people in my town are telling me that my taxes haven't been paid and my property is delinquent. After that, Chase labels my account as past due and begins to assess late fees and threaten foreclosure. I call Chase and am automatically routed to collection people who do nothing but scream abusively at me to pay my bill.
Virtually no attorney will touch the case because they all want to keep getting business from a large financial corporation. Out of desperation, I finally contact the New York Banking Commission. Over the course of months, Chase - very, very grudgingly - corrects most of their errors. They never stop being nasty, and begin to imply that they might sue me anytime I refuse to accept their initial offer.
This process took approximately four years to complete. I eventually was forced to default on the property for a number of reasons, some of which were unrelated to Chase. At this point, I discovered that they actually WANT you to default on FHA insured properties, apparently because they make out rather well, or so my realtor claims. In any case, it was the first time they were actually very pleasant and cheerful on the phone. Go figure.
Name:Tink
Comments:
I HAD MY HOUSE MORTGAGE THROUGH CHASE IN 1996. IN THE BEGINING WHEN I WOULD SEND A PAYMENT TWO WEEKS BEFORE THE DUE DATE THEY WOULD NOT APPLY IT TO MY LOAN UNTIL AT LEAST A WEEK AFTER IT WAS DUE.
CAUSING ME A LOT OF LATE FEES WHICH THEY DEMANDED TO BE PAID IN FULL IN A LUMP SUM A YEAR LATER. I HAD TO PAY IT TO KEEP MY HOME. NOW, THEIR RECENT SCAM, "THEY NEVER RECIEVED MY PAYMENT!" I EVEN HAVE WIRED THE MONEY TO THEM, BUT THEY NEVER SEE IT...I HAVE FOUGHT AND ARGUED WITH THEM, IT DOES NO GOOD. IN THE LAST TWO MONTHS I HAVE SENT THEM $800.00. MY PAYMENTS ARE ONLY $196.93 A MONTH. I AM A SINGLE PARENT WITH 2 CHILDREN WORKING FOR MINIMUM WAGE AND TRYING TO GET MYSELF THROUGH COLLEGE. THE MONEY THAT THEY ARE TAKING FROM ME AND PUTTING IN THEIR GREEDY POCKETS I COULD REALLY USE. THEY DO NOT CARE...THEY HAVE RUINED MY CREDIT AND I AM AFRAID I WILL NOT BE ABLE TO GET A GOOD JOB WHEN I GET OUT OF SCHOOL. WHO IS GOING TO HIRE AN ACCOUNTANT WITH BAD CREDIT??? DON'T LET CHASE RUIN YOUR LIFE. GET YOUR LOAN ELSEWHERE!!!!!!
Name:M.B.
Comments:
Chase Manhattan is the absolute worst mortgage company. Chase misapplied my monthly payment into some one elses account. A year later I discovered they were reporting all my payments one month late due to their error. After spending several hours, several days in a row, on hold in their voice mail jail ..........finally getting to deal with one of their arrogant employees who thought I was just another scum bag with credit problems, I had just about enough.
I sent them copies of all my check stubs that they had cashed and I insisted on a letter from them taking responsibility for the mistakes they had made. It took over two years to finally clear my credit from their mistake. They never took responsibilty for their actions and caused a major problem in my credit simply for lack of caring.
I have since refinanced at a local institution due to the fact that they don't sell the mortgages they write, therefore I won't end up back with the absolute worst mortgage company in the world.........Chase Manhattan Mortgage Company....The bank with no conscience!!!!!!!!! All other banks SUCK less than CHASE!!! DO NOT DO BUSINESS WITH THIS BANK!!!!! You WILL reget it.
Name:K. Cullen
Comments:
In an attempt to start a bi-weekly mortgage, I recently started sending in 2 payments per month with my total payments equaling my required monthly payment of $660.25. After receiving a dunning letter and an automated phonecall, I called them back. During a subsequent terse conversation with a very rude young woman, I learned that I'm not allowed to make partial payments and that if I continued to do so, they wouldn't be accepted. I was also told that if I wanted to make two payments per month, I would need to contract with an outside provider who would charge me for the service.
Needless to say, the first thing I did was to check my loan documents which confirmed what I had been told. However, the documents did also say that I had the right to prepay the loan and that I needed to write "PREPAYMENT" on the check if I was to do so going forward in order to have the payment receive the right treatment.
This won't really accomplish what I had originally intended because I wanted to shorten the life of the loan (by speeding up the payments) without increasing my monthly cash outflows. However, I am now so exasperated with Chase that I am going to start making small weekly prepayments which will increase their cost of servicing my account and shorten its average life, thereby reducing Chase's rate of return.
Chase should really think about accepting two payments per month. In fact, I would be lot more likely to switch to a direct-debit setup if I were to have that option.
I guess Chase really does suck!
Name:Dan Rudolph
Comments:
While I have had several problems with customer service at various companies over the years, none compares to the sheer incompetence of Chase. I took out a 20 year mortgage with Chase last year. Since then, Chase has been invoicing me for an amount greater than that provided for in my promissory note. When I first brought this error to their attention (in December), I was informed that their computer system said that my loan term was for 15 years.
I have written three detailed letters and called Chase on over 25 occasions over the past 4 months, and they still have not corrected this error. Their representatives are unhelpful, untruthful, and totally incompetent. I must conclude that each of their representatives is trained to lie to customers. Even though I continued to pay the overcharged amount, I have been receiving collection notices and phone calls in clear violation of the Fair Debt Collection Practices Act.
Name:L.S.M.
Email:witheld
Comments:
We had a mortgage with Chemical that was taken over by Chase after the merger. We notified them when we moved. We even received a mortgage statement from them for tax purposes.
Yet, when our electronic debits were misposted, Chase mailed the demands for payment to our old address. They never contacted us by phone (eventhough they certainly had the number) until they were threatening to begin foreclosure proceedings. There was all of $4,000 due on the mortgage. The man who called could only be described as a thug.
Way to go Chase!
Name:D. Boggs
Comments:
Have documented proof -- at least a year's worth -- of how Chase Manhattan is charging late fees on mortgage payments when they are not late.
I have had to deliver many mortgage payments via Fedex to establish date of delivery, and many times they tried to charge late fee.
I had to prove every instance where they were not late.
Anyone having a class action, I will be glad to add my name to the list.
Name:B.K.
Email:na
Comments:
Chase Manhattan Mortgage incorrectly computed our escrow for our real estate taxes and then tried to blame the bank that originated our mortgage loan. Unfortunately for them, I was a loan officer for that bank at the time of our loan and knew they were lying to me.
I let them lie for about ½ hour on the phone before I told them I was a loan officer and knew what they were telling me was not possible. The silence was deafening. I'm glad to see this site-maybe they will get the hint!
P.S. The bank I used to work for will no longer sell their mortgages to Chase since they screwed so many up!
Name:Bombeiro
Comments:
How would you like to have a 30 year mortgage taken over by those clowns? I`m hoping it`s possible to piss them off enough for them sell my mortgage to sombody else!!!!!
They hound me w/ phone calls & letters when I`m 2 days late paying (I`m convinced they mail out those notices at 6:00AM of the due date) Then, when they receive their payment, they invariably take up to 2 months to cash/deposit your check.
Furthermore, their "Loan Counselors" either speak in broken English, (the nicer ones) or offer Gestapo-esque payment ultimatums called alternatives.
Name:C.K.
Email:Not Given
Comments:
Well, the tradition of sucky service continues with Chase Home Loans. Once you get put on autopay (automatic deduction from checking account)you no longer receive statements regarding your account.
AND because they sort of misrepresented how the loan payoff would work, if I continue to do the autopay thing for the term of my loan, I will have a balance due of 50% of the original loan.
I have called and called trying to get statements, tried to change my monthly autopay amount, etc., etc. to no avail.
It is quite obvious that they just want me to keep paying the minimum payment. This means MUCH more money for them. DON"T USE CHASE HOME LOANS!!
Name:Not Given
Comments:
A few years ago before Chase took over Chemical Bank, Chemical was involved in a class action lawsuit regarding escrow account balances. I believe the result of the lawsuit was that Chemical would wave application fees for plaintiffs who applied for a new mortgage or wanted to remortgage.
Does this sound familiar? Not thinking that I would ever collect on it I threw away the letter I received regarding the lawsuit and the verdict. Now that Chase has my mortgage and I am in the process of remortgaging I need this info and of course Chase cannot help me. If you or any of the visitors to your website can remember this lawsuit I would sure appreciate the info.
Maybe then can I get Chase to actually do the right thing and y attempt to see if they could possibly save me a few dollars. God forbid they do that since they have already collected over twenty thousand in interest from me.
No one at Chase seems willing to take the initiative to try and research this for me. I must say I love your website. After dealing with Chase Loan officers it was a great stress reliever to click on to your website and see that I was not alone in Chase Manhattan Hell.
By the way I posted a message and boy did it feel good. Thanks for listening and I appreciate any help you can provide. Thanks again and keep up the good work!
Name:M.H.
Comments:
The following story is summarized, and I came to understand what had happened after several months of hours on the phone with very resistant and condescending staff. I have my mortgage with chase, they sent a check by "mistake" to pay for my windstorm protection in January of '96, my check by the way was there too, a couple of days earlier, the windstorm people decided to send my check back, I never realized what had happened until chase began to charge me for it. I thought, and I am sure chase did too, that my flood insurance was included in that windstorm protection, in error. In April chase sent a letter asking re my flood insurance. I ignored it because they had sent me similar meaningless letters in the past. And in my mind, I had paid for it. I have one in my hand right now, even though all my insurance's are paid. In May '96 chase placed an "enforced" flood insurance coverage, the flood insurance usually costs me about $800 for the year, chase charges about $3,000.
In June of '96 my flood insurance coverage started again. Chase corrected their records and "only" billed me for half of the year for approx. $1,300. I know three things: First, they made the same mistake I made and thought that my flood insurance was covered with that check sent to windstorm, second, if I would have had any losses during that period of January thru May because of flood damage, they would have not paid me a penny! Third, if I do the same thing in my job as they did I will end up in jail.
If I try to pay anything against the principal, they automatically pay the "escrow," even if I have a dispute with them about the fees they are charging me. In acceptance of the part of my mistake, I have agreed to pay them for the lapse of my insurance at their high fee level but they want to bill me retroactively. I have asked them to negotiate with me and let me pay for the months of April and May since that is when they realized their mistake and began to bill me. I have spent hours trying to get this dispute to an end without having to give them an extra $1,000 DLLs. to no avail. The consumer should pay for the coverage at the regular fee and not at that ridiculously exorbitant inflated fee.
I know a fourth thing: without any doubt, this maneuvering is designed not to protect the properties but rather for chase to make money out of the consumers pocket.
Name:H.G. Faulk
Email:not given
Comments:
Chase Manhattan Mortgage Corporation are the most lying, cheating mortgage company in the world. They are bilking poor working people out of millions of dollars everyday.
Name:Larry Wallace
Email:not given
Comments:
Mortgages serviced by Source One(Chase, Chemical, etc.): Late charges after rejected payments. Overpayments rather than being credited to principal are either reduced or late penalty is added in the amount of the overpayment.
In foreclosures anonymous statements are used in violation of the Constitution and rules of evidence. Payment records may take up to 18 months. Allegedly they are available by phone or written request Code of Federal Regulations 24 CFR 203.58.
Name:S.Y.
Email:Not given
Comments:
For about 8 months I had a Chase home equity account, which I've closed because of terrible experiences I had with them. I refinanced the entire loan amount as soon as I could when I realized that these guys don't have a clue. For example, once they lost a payment I sent (this is a long story but I'll make it short), and it took them almost a month to find my check, after numerous phone calls and faxes that I've sent them.
After wrestling with Chase for a while I decided to pay off the loan and refinance elsewhere. By then I had an automatic payment deduction set up, so I called ahead (don't ever take chances with Chase) to make sure that the automatic payment will stop after the payoff. After the loan was paid off, sure enough they kept deducting the monthly payment from my checking account.
When I called them back, they had *no* record of this deduction and referred me to their "research" department. After a month and a numerous phone calls from me they finally figured out what happened and sent me a refund check. To top it all off, their customer service representatives were very very rude.
These guys are just as bad as FirstUSA if not worse. -SY
Name:K.C.
Email:not posted
Comments:
As a mortgage customer of Chemical Bank (now Chase) for approximately 8 years obviously I have a lot of negative stories to relay. Although I have encountered a few very capable hard-working customer service reps in many, many calls to Chase, the odds are not good that you will not be hung up on or essentially blown off. Some of our more notable encounters include:(1)Sending proof of flood insurance sometimes 10 times EVERY year and then having a pricey insurance policy force-placed on our escrow account (they get a cut of this false profit which surely helps their bottom line, albeit temporarily). Analysts are you listening?
(2) The result of prepayments (marked accordingly) sent along with the regular loan payment has been invariably a late payment notice, or an addition to escrow.
(3) Once we got a call at 8:30 on a Saturday morning, a human voice verified my husband's identity and then a computer told him we were late in payment. We weren't. It turned out to be a computer glitch. I don't remember an apology and received no response to my resultant correspondence. I have started sending all bills and correspondence certified mail-return receipt requested because in several other instances they have told me I was late in paying (I vehemently deny this and am working to prove it). It costs $2.66 and is not as pricey as any of the bill paying options Chase has given us. If the certified mail is returned undated (it has happened) the receiving post office is supposed to keep a record of the receipt.P.S. I have decided to refinance with a nice, honest CREDIT UNION!!!
Name:P.C.
Email:not posted
Comments:
Chase really does suck. They lost 3 of my house payments and even though I had proof of delivery and proof of payment they put my wife and I through the forclosure process and lied to us.They said they would not.
We even had in writing that it was their fault. Lawyer fees were over $7000.00 to save our home but our credit is now ruined.
There is alot more I could say about this nightmare.
Pc
Name:kim bialecki
Comments:
Back in 97 we had a house mortgage with them. They claimed we did not make payments on a house we had a va loan on.
We hired an attorney to call them and see if they would take our payments and said we were in default but we were in default due to them sending our payments back!!!
We called them everyday and so did our attorney and finally one of the representives after three months said it was their fault and would call our attorney to straighten it out so we could have our home.
He never called and they put our house in forclosure, they did not even know they had done that so back to square one. We filed a banckruptcy to stop the sale and they did not show up for hearing either.
va said they did not care if it was illegal or not they were taking our house. Now we have bad credit and could not find a lawyer who would represent us. Even the first lady said it was a shame but these things happen wwhen va told them we don't pay house payments.
They refused our payments and we lost our home and are now broke. Be careful people because they don't care if your children cry or you lose everything.
Their business practices are illegal and were suid under chemical residential mortgage and that is when they took over.
Any one wanting to represent us , please feel free to e-mail
Name:Bart Millikan
Comments:
We have a mortgage with them. They have never sent us a statement on how much we have paid. I tried to call their service department. After entering the maze of automated voices, I end up having to leave a message. No one ever called back.
So I try again and again to get a real person. I think Hal 2000 is alive and well at Chase Manhattan Bank. This would be an ideal business school case study for poor customer service.
Name:Dale Shepherd
Comments:
They are holding over $3200 from a mortgage that I paid off. Over the phone, their service people agree that I am owed this money, but they don't know how to send it to me. Imagine that. Chase doesn't know how to cut and mail a check. Meanwhile, they are making money on my money, - interest free.Bottom line: If you place any money with Chase, then you are placing it at risk. E-mail me anytime for the details, which are even more troubling.
Name: Rich
Location: Arlington Heights, IL
Date: Thursday, November 12, 1998 at 20:13:34
Comments:
In June, 1998 we applied for a second mortgage to be used in a business venture. At the closing, the interest & closing fees were higher than they were supposed to be. We walked out of the closing with the understanding we would not be conducting business with this financial institution. One month later, we received a mortgage statement from Chase showing a payment due. Upon contacting their cust. svc. dept., we were informed that as far as they were concerned we had taken the mortgage with them. We received a second bill from them not only for the 2 months for a mortgage we never signed off on, but with penalties added.I made my way up the Corporate Ladder with the reassurance that the situation had been taken care of only to find upon reapplying with a LOCAL BANK that Chase had put their false information on our credit report. Chase isn't willing to offer reasonable compensation for over 20 hours of telephone conversation and neglectful reporting. We are in the process of filing formal complaints with the appropriate governmental and credit report agencies. If we can save at least one person from going through the aggravation that we've gone through and cut into Chase Manhattan's purse strings that will be gratifying all in itself.
Name:Charles P Jerian
Location: Palo Alto, CA USA
Date: Tuesday, October 27, 1998 at 12:30:14
Comments:
Chase Sucks!, They are jeopardizing my refinance and all their customer service representatives lie.
I am sending you this letter in writing to preserve my rights under the Fair Credit Reporting Act.
Chase Manhattan Mortgage Corportation, having received the full requested balance for payoff of XX,XXX.XX + 10.00 for title processing the amount requested for a due date of Thursday September 24, a full 5 business days, the due date was suggested by the Chase representative on the phone.
According to your computer you received this amount on the 25th of September, one day late, the post office suggests that it delivers first class mail in 1-3 days, and you failed to contact me.
I contacted you the following week, after your computer system at 1-800-762-6139 indicated a small balance of < $50.00. The representative of Chase redid the calculation based on the arrival of the money 1 day late and demanded the payment of an additional $4.51 of accrued interest.
I immediately forwarded the amount of $5.00 to cover any accrued interest on the remaining principle balance of 4.51 at 10% interest for the next year. This balance was recorded as received by your computer system on the 30th of september.
The next day a different represenative at you toll free number assured me that no payment was necessary, and the account would be marked paid off.
The balance on your computer system has continued to grow without limit and as of Oct 9 has reached 163.32.
On Oct 9 you will automatically deduct XXX.63 from my checking account, an amount for which you are not entitled. I expect the amount to be repaid with interest at at least 10% compunded annually for the period the money is absent from my checking account, calculated to the day that your return check is expected to clear.
Dear Supervisor Linda,
I am enclosing a copy of a fax, which I sent to your bank several weeks ago, and which I also mailed to you buy regular mail. This explains the history of my interactions with Chase before that point.
While your computerized system believes that my loan was paid off on October 10, I was given many assurances that the payment received on September 25th by Chase and whose checks had cleared was payment in full for the amount owed. I relayed on the word of the various chase Customer Service representatives at your toll free number.
Later, the representatives at that number stopped knowing anything about the case, and murmured about a research department that would be studying what had gone wrong.
Apparently my problems began when I used the US Postal Service to deliver to you $XX,XXX.67 + $10 recording fee. The Chase person on the phone said that the 24th Thursday was plenty of time for the mail to get to Chase. The US Postal Service according to Chase delivered the mail on th 25th, Friday. Therfore Chase demanded 1 extra day of interest when I called them on Monday the 28 the of september. The person on the phone said to not send the amount of $50 dollars that the computer voice indicated was the balance, (by the way that balance kept increasing by $11 a day till the automatic payment on October 9) Please send us $4.51.
I sent you a postal money order for $5.00 using Priority mail at a total cost of $8.78, in case interest accrued on the $4.51 balance, fooled me once, shame on you, fooled me twice shame on me.
This was too clever by half, no human is as powerful as the Chase computer, (I should have sent $100.00 by express mail and not belived Chase clerks, this would have forced the computer to push the balance to a negative value and solve my problems)
(Unfortunately Chase did not seem to actually apply the $XX,XXX.67 to my principle till October 9, since interest kept accruing.)
I called Chase the next day and asked if they could hurry the matter by having chase forgive the $4.51, the second person was much nicer and agreed, saying that Chase would apply the previously recieved amount one day early and close the account, no payment would be necessary.
I called the computer voice every day, and the balance kept going up. Ocassionally I braved the long wait to talk to a human, the last one I talked too said it was not clear if the account was paid off, and that it was a matter for the mysterious research department, I asked him about the automatic payment system, it was still active, in this way the automatic payment system pushed the balance strongly negative on October 9.
I believe that all the Customer Service people did nothing for my case and lied to me more or less the same way the Postal Employees that discard mail rather than deliver it, because it is easier to do nothing.
Based on my canceled checks, records the amount was definitely paid off on September 25 1998.
A thorough review of the account will find the errors that were made, and may point out what the problems are with your Customer Service or the mythical research department.
I believe that the date of the canceled checks will be positive proof that the error was entirely the fault of Chase, and any responsibility will fall to Chase.
