This is What Foreclosure Looks Like: A middle-class Woman Fights Chase

by Brenda Reed                                                             photo: Cole Henley cc

The past few days have taken a great emotional and physical toll.  Last week, I learned that Chase intends to foreclose on my home of 38 years-on the anniversary of when my husband was KIA in the Vietnam War.

I am sick with worry and have not been sleeping well--if at all.  I wonder what will happen next.  I've chewed down my nails. I'm not eating well. I have joked about jumping off the Golden Gate Bridge -- of course, I'm afraid of heights and hate being cold and wet so that wouldn't work for me.  Then there would be the problem of where to park the car and maybe never being found (wasting a good burial plot at Oak Hill Cemetery next to my husband -- probably my most successful real estate investment).  So where's the fun in all that? 

I am age 63. I successfully raised two children on my own as a young war widow.  I returned to college on the GI Bill, graduating with honors. I've worked at First Boston, then Cigna for many years, and reinvented myself as a mediator, working on investigations for the INS, Homeland Security, USDA, and the US Forest Service.  I have operated a small Bed and Breakfast in my home for eight years.

I am resourceful, determined hardworking, and creative.  I face issues head on.  I keep on keeping on, no matter what. I persevere. I've never been on welfare, Never received food stamps. I have earned my way and taught my children to do the same. Even in 1991, when my home--and 3500 others in my community burned to the ground-devastataing my life, I picked myself up and started all over again. 

Until the economy shifted and my businesses setbacks occurred, I had a credit score of over 720.  I paid all my bills--$7,000 mortgage payments, $1,000 car payments plus living expenses every month on time for years and years and years. But now I can't.  I wish I could.  I'm doing all I can to turn things around.  Chase is not making it easy for me.  Bankruptcy may have to be my next step.  It pains me beyond belief to face that possibility!

I am a proud American.  I vote in every election.  I was once a Republican. I have been a Democrat since Bush 1.  I am distantly related to President Barack Obama.  I feel that Democrats and Republicans alike have let everyday people like you and me down -- no one is reining in the big banks, no one!  Nobody seems to care about us, the real people.

Last week's meeting with a home lending advisor at the Homeownership Center proved to be one of the most difficult times in my life.  Respect and dignity were not there.  I was treated like a scofflaw and felt humiliated in front of my son who attended.

 I've been trying to obtain a permanent home loan modification on my home of thirty-eight years.  I've explored getting a business loan since my house is a business.  The bank representative told me that Chase wants to work with homeowners and are opening a large number of new Homeownership Centers across America. He claimed to have worked with 4,000 homeowners out of the Oakland office alone.  However, my understanding from reading the Wall Street Journal, the New York Times, and local papers is that a miniscule number of trial modifications have been converted to permanent modifications and that Chase has the worst track record of any bank in the country

While working as a mediator for over twelve years and in the business world for more, I have never witnessed nor been exposed to such callous, harsh and insensitive disregard as during my dealings with Chase Home Loans (formerly WAMU) since July 2009. 

In mediation, my role is to set a tone of respect and dignity so parties can find a way to reach a better understanding and more than likely resolve their differences.  With one or two rare exceptions, in every case that I've been privileged to mediate in, every party has been mutually afforded that dignity and respect -- thus allowing for mutual trust to be reestablished.  In a vast majority (over 75%) of the cases were resolved amicably and quickly for the good of all involved.

Chase turned me down for a permanent modification.  No one at the bank can tell me how much income I need to qualify for a permanent modification.

I may reapply however there is no assurance of a different outcome. But there may be no solution for me, and people like me within the kingdom of JPMorgan Chase.

Now Chase's legal team is moving forward with foreclosure proceedings

Chase is demonstrating that they are unwilling to work to find creative solutions to keep all but a few homeowners in their homes.  They know thousands of homeowners cannot pay their mortgages.  They know we want to work things out.

To foreclose on a homeowner makes no economic sense to me.  My home is "upside-down" by about $200,000 or more.  I am about $66,000 in arrears.  Real estate commissions for the sale will be in the neighborhood of $78,000.  Closing costs could come to another $50,000.  It is unlikely the bank can sell the house for the debt owed.  It's unlikely the bank can sell the house for their recent appraised value.  By my calculations Chase will lose $450,000 and probably more by foreclosing on my property.  Truly this is an unsound business decision. $450,000 would account for 12.5 years of trial modification payments.

As a Chase stockholder I am appalled.  As a Chase customer I am utterly devastated and dismayed.  Chase is being irresponsible in not working -- truly working -- with their homeowner customers who are in financial difficulties.  They took our TARP money -- invested it -- paid Jamie Dimon a $17,500,000 bonus -- then stated they didn't need our taxpayer TARP money after all.  Still, they took it and have done basically nothing to help struggling homeowners.

The statements in this article are the personal opinion of the writer.

excerpted from Musings of A Southern Woman