Chevy Chase Horror Story

[out of options]

I have a 1st mortgage with Chevy Chase and a LOC with Chase. The 1st was a pick a payment loan. I paid the minimum payment for 2 years not realizing that there was a 10% cap and as soon as the negative interest hit 30K the loan was adjusted to a permanent loan with a payment of 2600 a month. Prior to this I was only paying 1400 a month. Needless to say I could not afford the increase.
I decided to try and do a shortsale. We got two contracts at 3K less than the appraised price. Chase agreed to take 3K and write off $37k. Chevy Chase took us through hell and then denied the sale. They told my agent that Corporate Management made a decision to foreclose ALL loans. My agent offered to give them $10K of his commission which would put the price over the appraised value and they still REFUSED. They told my agent I could do a loan modification.
I called and spoke to Hong Kim who the best I can tell is an attorney for the bank. He told me I had 3 choices. Bring the loan current, do a work out, or a short sale. I pointed out to him that they had already denied my short sale even when they were offered more than the appraisal which they did. He said well Corporate Management thinks you can pay for the house. I told him you have all of my financial info do you think I can pay for this house? Again I got the Corporate Management statement.
To bring the loan current requires $23k. If I had $23k I wouldn't be in this situation. Then I can divide the 23 by 9 and addit to the 2600. HMMMM that is nore than I make in a month so somehow I think that wont wotk either.
Mr. Kim proceeded to then tell me how a short-sale is suppose to benefit both parties. I asked him how a foreclosure is going to help Chevy Chase? He has no response! On a foreclosure they are going to get less than the short-sale!
The head of the mortgage department told my agent that BF Saul is going to take the properties from the bank. I think this is illegal but I have no where else to go.

[Moe Bedard]

Hi out of options,

Welcome to the forum and thank you for joining.............
I am so sorry that you are going through this..........
Chevy Chase denied the Short Sale after you filled out the Short Sale package, had your financials checked, were in default, and had prior approval from them to sell the home short before offering it that way? If this is the case then you might have to get a Real Estate attorney involved if they are not willing to work with you on this...........

[out of options]

HI ***,
Yes that is correct. I forgot to say that the denial letter they sent told me to continue to market my home during the foreclosure and that I should market it at FMV. Now that is strange to me since we already gave them a contract and then offered more than FMV and they said NO.
I wonder if there is somewhere I can report this for investigation of the bank. See the BF Saul Real Estate and Chevy Chase Bank are related companies. When my agent who has done over 10,000 short sales questioned why final approval was denied he was told that Corporate management made the decision that all properties are to be foreclosed no more short sales. Then Saul is preapred to take the properties from the bank. i can only imagine this bank employee will be fired if it was known he disclosed this information.

[Moe Bedard]

Here is where you can file a complaint again Chevy Chase..........

Office of Thrift Supervision - Home


I am not sure if it will get you the help you need now, but it might......

[out of options]

Thank you. This is exactly what I needed. I'll let you know what happens.