...and if this Oregon precedent extends nationwide, Chase could REALLY hurt from it.
If you're like me, you have a house that either is or was underwater, and you faithfully made your payments anyway. You've been offered dozens to hundreds of "mortgage modification" schemes by your bank/other banks. I get at least two per week, and have for several years. Chase even sends them to me via FedEx.
Chase Bank is VERY big in these, in fact, even though I'm a customer of theirs, I have NOT been able to shut off the stream of offers to get me to re-do my mortgage. I've resisted a new mortgage, even though I might save as much as $7-800/month, just because my old mortgage, at 6%, is a bulletproof, REAL fixed mortgage. The new "fixed" mortgages are not quite that, have some contract language in them that lets the bank holding them raise the interest if certain "emergency" conditions are declared from Washintoon, as I've heard from several knowledgeable sources.
Every time I have asked to see a copy of the contract before signing a committment to apply, I have been refused by Chase. They're just like the Democrat Senate under Harry Reid, they want me to sign for the contract before I get to read it.
In the present case, the first to ever come to a JURY in Oregon, a guy sued because Chase promised him a re-do of his mortgage into one of the "Obama-mortgages", and after he applied, paying a $10K fee, they denied his app, then foreclosed on his house and gave him the boot!
Chase has done this over and over, but this is the first time the case ever went to a jury.
The jury said bullshit, gave the guy back his $10K fee, and now the case is remanded back to the Special Master who, with his hands untied of Chase's fetters, will now likely give the guy back his house and return the old mortgage to effect.
You cannot imagine how bad this is for Chase:
- They've just been told that their practice of hiding the contract terms until application is irrevocably filed is BS (as I've suspected all along).
- They've just been told that despite contract language that puts everything in writing, their phony promises are as good as their written corporate word, and they have to stick by them. Sales talk counts!
- They've just been put on notice that their practice of Democratic-Style business is not appropriate for Oregon.
I would expect that a flood of similar cases will now hit the Courts, and I would expect that the Attorney General of Oregon, in Chase's pocket up to now, might just have to side with nos populi against the megabank from now on.
Sic semper tyrannis, really!
Maybe I ought to get a copy of the judgment in this case, walk into Chase Bank, and demand to see that contract. That would shake their tree, wouldn't it?