Legal Help

avakash patel

LoanSafe Member
Feb 26, 2017
10
3
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I was the homeowner builder of my home in Orange County, California. Bought my lot in 1998 and got a certificate of occupancy in 2000. Funding was through Chase Mortgage for $350,000 with a HELOC also in place for $120,000. Lot bought for $540,000, with a down payment of $141,000.

The loan was interest only construction loan until completion of home and would roll over into conventional financing upon occupancy. Chase was notified of completion, with hand delivered documentation, occupancy permit and completed sub contractor card, in January 2000.

I realized in 2003, that Chase had not rolled over the construction loan into conventional financing of 15 year mortgage due to them misplacing my construction documentation.
Upon notification to them, they promptly converted with no cost at 4.725%.

I paid the loan until June 2015, when i was giving a forbearance plan for 6 months. In 2016 i was given another forbearance plan for another 6 months. I have been paying the property tax amount to Chase, who subsequently sold my loan to SLS. Loan amount is $100K
I did not use the HELOC, during construction phase but started using it 2009 on wards to keep my restaurant business going.

I closed my business in 2012 and had maxed out the HELOC by 2013. I paid the payments on HELOC until December 2016, and stopped because of a medical disability. Chase today sent me a legal document, NOTICE OF PENDENCY OF ACTION, for the HELOC, which has a amount of $104k.

My question is , can i hold Chase accountable legally for loss of documents on completion of construction of my home and not rolling the construction loan to conventional as per construction loan documents, in a timely fashion, so as to off set the HELOC ?
My home is valued by property tax assessor at $1,400,000.
Any advise would be appreciated.
 
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avakash patel

LoanSafe Member
Feb 26, 2017
10
3
3
58
I was the homeowner builder of my home in Orange County, California. Bought my lot in 1998 and got a certificate of occupancy in 2000. Funding was through Chase Mortgage for $350,000 with a HELOC also in place for $120,000. Lot bought for $540,000, with a down payment of $141,000.

The loan was interest only construction loan until completion of home and would roll over into conventional financing upon occupancy. Chase was notified of completion, with hand delivered documentation, occupancy permit and completed sub contractor card, in January 2000.

I realized in 2003, that Chase had not rolled over the construction loan into conventional financing of 15 year mortgage due to them misplacing my construction documentation.
Upon notification to them, they promptly converted with no cost at 4.725%.

I paid the loan until June 2015, when i was giving a forbearance plan for 6 months. In 2016 i was given another forbearance plan for another 6 months. I have been paying the property tax amount to Chase, who subsequently sold my loan to SLS. Loan amount is $100K
I did not use the HELOC, during construction phase but started using it 2009 on wards to keep my restaurant business going.

I closed my business in 2012 and had maxed out the HELOC by 2013. I paid the payments on HELOC until December 2016, and stopped because of a medical disability. Chase today sent me a legal document, NOTICE OF PENDENCY OF ACTION, for the HELOC, which has a amount of $104k.

My question is , can i hold Chase accountable legally for loss of documents on completion of construction of my home and not rolling the construction loan to conventional as per construction loan documents, in a timely fashion, so as to off set the HELOC ?
My home is valued by property tax assessor at $1,400,000.
Any advise would be appreciated.
 

avakash patel

LoanSafe Member
Feb 26, 2017
10
3
3
58
Looks like Chase have lost the HELOC documents on my account. They have served me a lawsuit to ask the court to
put aside the loss and start the foreclosure process.
They state the HELOC was signed in 2003, but it actually was started in 2000.
Any advise would be appreciated.
 

avakash patel

LoanSafe Member
Feb 26, 2017
10
3
3
58
Looks like Chase have lost the HELOC documents on my account. They have served me a lawsuit to ask the court to
put aside the loss and start the foreclosure process.
They state the HELOC was signed in 2003, but it actually was started in 2000.
Any advise would be appreciated.

Just talked to an attorney and he informs me that that the trust deed for the HELOC is not recorded, so the HELOC is unsecured. Seems that Chase has a lot of unrecorded trust deeds according to Chase attorney.
As i have a lot of equity in my house, my attorney has suggested a settlement. The HELOC is $104K, so knowing the loan docs are "lost" and the loan is unsecured, what number should i settle ?
 

avakash patel

LoanSafe Member
Feb 26, 2017
10
3
3
58
Ok, so my HELOC was settled with Chase for $75K, and refinanced with a hard money lender for the 1st and HELOC. The 1st, Specialized Loan Services, filed a foreclosure with auction date.
So because i had so much equity, about $1,400,000, i needed to protect this.
Cashed out $50K, to payoff high interest credit cards.
Now looking at refinancing, hard lender loan at 9%, after my FICO score rises above 700, at 640 at present.
Paying off credit cards alone, FICO increased 40 points.
Happy no foreclosure, and getting my financial life together.
Hope this helps, anybody in trouble.
 
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OneHugeMess

LoanSafe Member
May 30, 2016
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@avakash patel, you sound like a Great Candidate for a FHA Home Loan. You could probably get a rate around 4.750 with that score. I would reach out to a good broker like @Erik Sandstrom and see what your options are.

You don't need perfect credit with FHA, and your LTV is so low, the rate could be price adjusted off the LTV to make up for your FICO Score. You might also be able to get into a Non-QM or Alternative-A loan, which would still be far cheaper than 9%.

I would look into it! :)
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Thanks a bunch guys and I would love to help. Avakash please e-mail me or give me a call: [email protected] 619-379-8999