Class Action: JP Morgan Chase Bank Skipped Mandatory Face-to-Face Interview Before Accelerating Foreclosure

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A proposed class action lawsuit recently removed to Massachusetts federal court alleges that defendant JPMorgan Chase Bank National Association acted improperly in foreclosing on mortgages and selling foreclosed properties without authorization to accelerate such proceedings. 

The plaintiffs have together owned a property in Quincy since December 2011, the lawsuit says, and took out a Federal Housing Administration (FHA) mortgage note in the amount of $487,325. On December 22, 2015, the plaintiff’s mortgage was assigned by Mortgage Electronic Registration Systems, Inc. to the defendant. 

Fast forward to March of 2018, when, according to the case, the defendant informed the plaintiffs that their mortgage had “been accelerated,” with foreclosure set to take place in May of the same year. The plaintiffs allege the defendant’s foreclosure action constitutes a breach of contract in that to accelerate a mortgage, particularly one insured by the FHA, the mortgagee “must have a face-to-face interview with the mortgagor”—or at least make a reasonable attempt at scheduling such a meeting—before three full monthly installments go unpaid on the obligation.

“[The plaintiffs] herein allege that Chase [sic] did not have a face to face interview with the borrowers before three full monthly installments due on the mortgage were unpaid, and that the Defendants made no effort to arrange such a meeting.”