JPMorgan Class Action Says Bank Forecloses Homes Without Notice

A class action lawsuit against JPMorgan Chase, which was recently removed to federal court, alleges that the bank wrongfully forecloses hundreds of homes.

Plaintiffs Dhimiter Llordi and Natalia Hoshovsky filed the class action lawsuit against JPMorgan Chase & Co. claiming that the bank forecloses homes after missed mortgage payments without attempting to contact the homeowners.

The Massachusetts residents say JPMorgan foreclosed on their home without conducting a face-to-face interview or making any reasonable efforts to arrange such an interview.

U.S. Housing and Urban Development regulations require lenders to engage in interviews, or make efforts to do so, after three mortgage payments are unpaid and before they are allowed to foreclose on a property.

The regulations reportedly state “prior to acceleration a mortgagee must have a face to face interview with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid.” The regulations do not apply if the mortgaged property is more than 200 miles from the mortgage lender or one of its offices.

The plaintiffs claim that JPMorgan failed to follow the regulations with hundreds of consumers who make up the proposed Class. “Plaintiffs believe that the Class encompasses hundreds of individuals whose identities can be readily ascertained from [JPMorgan’s] books and records,” the JPMorgan Chase foreclosure class action lawsuit states.

Llordi and Hoshovsky also claim that Chase committed breach of contract, breach of covenant of good faith and fair dealing, and breach of duty of good faith and reasonable diligence.

“The Defendants are obligated by contract and common law to act in good faith and to deal fairly with the Plaintiffs so as to guarantee that the parties remain faithful to the intended and agreed expectations of the parties in their performance,” the JPMorgan home foreclosure class action lawsuit claims.

Alleged damages sustained by JPMorgan’s actions include loss of home equity, moving expenses, loss of property interest, negative credit ramifications, loss of opportunities to rectify their situation, emotional distress, increased fees, accrued interest, and increased principal balances.

The JPMorgan Chase class action was originally filed in the Norfolk County Superior Court. JPMorgan recently removed the lawsuit to federal court, claiming that the estimated money in controversy on the alleged foreclosed homes exceeds the minimum for removal of $5 million.

In their notice of removal, JPMorgan disputing the allegations made in the class action lawsuit. The bank argues that the plaintiffs wrongfully interpreted their mortgage contracts and are not entitled to relief.

“Chase disputes the allegations in the Complaint, including Plaintiffs’ interpretation of the contracts at issue, and disputes that Plaintiffs are entitled to any relief,” the notice of removal states.

The plaintiffs seek to represent a Class of JPMorgan mortgage consumers who were not granted a face-to-face interview before three monthly payments were unpaid, and later foreclosed on. The JPMorgan Chase foreclosure class action lawsuit seeks actual damages, punitive damages, restitution, court costs, and attorneys’ fees.

Llordi and Hoshovsky are represented by Todd S. Dion of the Law Office of Todd S. Dion.

The JPMorgan Chase Bank Foreclosure Class Action Lawsuit is Llordi, et al. v. JPMorgan Chase Bank NA, Case No. 1:18-­cv-­11064, in the U.S. District Court for the District of Massachusetts.