JP Morgan Delayed Satisfaction of Mortgage Class Action Lawsuit
Tina Bellino has filed a class action lawsuit against JPMorgan Chase Bank for failing to file proof of mortgage satisfaction in a timely manner, causing complications for the plaintiff with title companies. The suit seeks to represent everyone in New York State who paid off a mortgage after May 2008 that Chase failed to present proof of satisfaction of to the county officer within 30 days.
Class Action Lawsuit Alleges Chase’s Delayed Proof of Mortgage Satisfaction Cost Consumers
The lawsuit alleges Chase has violated New York’s Real Property Action §1921 and New York’s Real Property §275, which concern the discharge of a mortgage. These laws require that when the lender in a mortgage has been paid in full for the principle and interest due on a mortgage, they present proof to the proper county clerk in a timely manner. Failure to do so incurs penalties to be paid to the mortgager as follows: $500 if proof is delayed 30 days, $1000 for 60 days, and $1500 for 90 days.
Tina Bellino had obtained a mortgage from Chase on her New York property. In May 2012, she sold the property and used the proceeds from sale to pay off the principle, interest, and other amounts due to Chase. However, the mortgage was not satisfied until June 2012, 41 days after Bellino paid Chase.
The suit claims banks frequently hold mortgage satisfaction documentation for months and even years before filing due to the consolidation of the banking industry. The plaintiff is seeking a trial by jury to confirm Chase was delayed in filing such documentation in Bellino and other mortgager’s cases and is seeking statutory damages as well as attorney costs and fees.