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Does "in litigation" mean they're foreclosing?

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by WCNurse, Mar 2, 2010.

  1. WCNurse

    WCNurse LoanSafe Member

    We filed Ch. 7 bk last year and it was discharged in July 2009. We did not reaffirm our mortgage with Chase. We applied for a loan modification and made our first payment 10/1/09. Sent in documents multiple times, continued to be told it was "in review". Finally got fed up and called the HOPE hotline late January 2010. Was told it was going to be escalated and that someone would call me within a few days.

    Low and behold "Katie" calls me on 2/4/10 from the treasury conversion team (whatever that means) and says my file has now been sent to underwriting. The next day, on 2/5/10, Katie again calls and says the underwriter wants a new hardship letter, expenses, paystubs, etc, which I send back to her the same day. She confirms receipt of all documents and I finally have hope that things are moving along.

    On 2/17/10, Katie calls and says my file has been submitted to the investor for final approval (my investor is Wells Fargo). She said they don't have a deadline as far as making a decision but was hopeful a decision would be made soon.

    The next week, I call Katie and leave her a message asking for status. To this day, I have not received a return call and her voicemail is now full. I was given the underwriter's name and number and call him several times, finally reaching him by phone on 2/25/10. He says that because my file has been "escalated" he is unable to speak to me and refuses to give me any information. I press him as hard as I can trying to find out if a decision has been made, even if he can't tell me what the decision is, but he refuses to give me any information, basically saying I need to talk to Katie.

    On 3/1/10, I make my 6th trial payment of $1860 thinking that I don't want to mess anything up and have high hopes we'll be approved and this will all be over soon.

    Today, 3/2/10, I call the status line again only to be told my file is now with "loss mitigation" and I'm given another number to call. This is the first time I've heard of my file being with loss mitigation so now I'm starting to worry. I call the number I was given and was told that my file is now "in litigation" and that they can't give me any information. I said that I'm not litigating them so it's got to be the other way around and asked if that means that I was denied and they're going to foreclose. They refused to give me any information and said that all they could do was send an email to the legal department and have someone call me. I've received no notices in the mail or on my door.

    What does this mean? Was our modification denied and now they are foreclosing? Why won't anyone talk to me at Chase...it's driving me up a wall!!! I can accept if I'm going to lose my home but at least want one of them to tell me the truth so I can begin planning. If anyone knows what it means when they say it's "in litigation" and with the legal department, please let me know. The suspense is killing me!!!
  2. msndrstood

    msndrstood LoanSafe Member

    Honestly, I have no idea, I haven't heard that term yet in relation to a mod status. I don't think they would move that fast if you were that close to getting approval, but I could be wrong, its Chase we are dealing with after all. Maybe you just got a hold of one of the village idiots and they really meant 'loss mitigation' which is where you would be at this point in your trial. I've been there for...well forever.

    Maybe someone else will chime in with better info, sorry I couldn't ease your anxiety, I know the sinking, sucky feeling.

    Too well.
  3. mrange25

    mrange25 LoanSafe Member

    definition of litigation:

    "any lawsuit or other resort to the courts to determine a legal question or matter."

    It might just be strong wording to try to scare you. To me, it means they are getting their lawyer involve which may mean they are going to take steps to get a judgement against you for your past payments. More than likely it is a bluff. (But in this poker game, that is a pretty big call)

    Regarding your bankruptcy, I think there are three things you can do with your home. reaffirm, not reaffirm, or surrender.

    I think if you would have surrendered it, it would have discharged your mortgage debt and you could have moved out.

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  4. Jillian118

    Jillian118 LoanSafe Member

    You may want to log on to your particular county clerks web site and look in the grantee/grantor index. Or give them a call since i have no idea where you live. They have to file all these notices of default and sale, and you should be able to look them up
  5. Mercury213

    Mercury213 LoanSafe Member

    If you are in a "judicial foreclosure" state, then this would be a good sign that they are proceeding with foreclosure. I'm no BK expert, but isn't this what they do if you file chapter 7 and do not re-affirm your mortgage?
  6. WCNurse

    WCNurse LoanSafe Member

    So today I call loss mitigation again and get a very nice girl that is very helpful....nothing like the lady I spoke with yesterday who only told me it's i"n litigation" and with the legal department.

    Today I'm told it's been escalated to the ERG and she gave me the name and number of the person it's assigned to. She also said that she sees terms in the system but that it's still with underwriting as they're still trying to work out the details. She tried to reach my ERG person to get a status but got his voicemail and suggested I wait a little bit and call him.

    I feel much more hopeful today hearing this and now don't feel like they're just trying to foreclose on us. I just wish they would be a little more selectful in the terms they use when they talk to us....telling someone their file is "in litigation" with no other description is not very nice! :mad:

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