[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Mostly sunny
Mostly sunny
95°F
 
Calendar
Today in
S.C.V. History
July 17
1834 - Sinforosa, daughter of Narciso and Crisanta, born at Mission San Fernando; mom from Tejon, dad from Piru; believed to be last speaker of Tataviam language (died 1915) [record]


911H4Hflag[KHTS] – Sixteen months after Habitat for Humanity volunteers rehabbed his Stevenson Ranch home, a military veteran is suing JP Morgan Chase over what he claims was an illegal foreclosure.

Tom McDivitt, a 10-year Army veteran and trained nurse, filed suit after the bank denied him the opportunity to follow through on a program he signed up for to help his family keep his home, he alleges.

McDivitt said his family ran into financial trouble after his wife, Stacey, became ill.

“We reached out for help and had to declare bankruptcy so that we could keep our head above water,” he said.

When he contacted the bank, he began a HAMP program, or Home Affordable Modification Program, which is “part of the Obama Administration’s comprehensive plan to stabilize the U.S. housing market by helping homeowners get mortgage relief and avoid foreclosure,” according to the program’s website.

For those in financial trouble, sthe program offers assistance to avoid foreclosure and reduce the monthly payments.

However, the bank used it to engage in a practice called “dual tracking,” according to McDivitt’s lawsuit. That’s when a bank works with a customer who is behind on a mortgage while going forward with foreclosure proceedings on the same home.

Habitat for Humanity volunteers work on the McDivitt home in September 2012.

Habitat for Humanity volunteers work on the McDivitt home in September 2012.

The practice was outlawed in California under a bill signed by Gov. Jerry Brown in July 2012.

After receiving approval and making payments on the HAMP loan, he was told by Chase to send information and that his second loan would be modified.

The lawsuit alleges at that point, the McDivitt reached out to JP Morgan Chase to let them know about the situation.

However, 11 days later, his home was foreclosed upon, according to the McDivitt’ attorney.

The financial institution asked for paperwork regarding the HAMP, and while the paperwork was being filed, the lawsuit alleges that a practice called “dual-tracking” was taking place.

“In the meantime, we got a letter posted on our door saying that the loan was sold to a management company and we need to move out in 30 days,” he said.

The HAMP payments were current at the time of the foreclosure, McDivitt said, so the family never had a legitimate chance to follow through on the program they thought would save it.

911H4HPaintThe McDivitts had received help from Habitat for Humanity’s Homes for Heroes project in September 2012. The program uses volunteer labor and donated materials to help with painting, carpentry and general maintenance. The same organization is developing an affordable housing community in Saugus to help veterans transition into home ownership after their service.

Lawyers for the defendants named in McDivitt’s lawsuit were contacted for this story and declined to comment.

The lawsuit seeks a rescission of the alleged “unlawful transaction.”

Tom McDivitt said he saw TV news segment on Chase and its loan program a couple of months ago.

“It mentioned the exact same practice they were doing to us, where they sold off the loan to an investment company, if you’re not current on it, and the investment company foreclosed on the house,” he said. “It was more profitable for them to do that.”

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

4 Comments

  1. linda says:

    I’ve been through this type of dual tracking. It terrible! I felt helpless and couldn’t believe this type of thing was allowed in the u.s.a. in which having a house is part of the American dream. We ultimately sold in a short sale and are renting now after 18 years of home ownership. My heart goes out to this family.

  2. You go this is sad and wrong

  3. The practice of Dual Tracking is also known as Parallel Foreclosure.
    I started a blog several years ago when Parallel Foreclosure was in its infancy. Click above to see the site.

    Not sure why Parallel Foreclosure is legal. Ultimately, a federal program is used to lure people into losing their home. Just the act of applying for HAMP apparently lowers one credit score. Something is very wrong.

Leave a Comment


SCV NewsBreak
LOCAL NEWS HEADLINES
Tuesday, Jul 17, 2018
Coroner Identifies Body of Man Found in Canyon Country
Officials at the Los Angeles County Department of Medical Examiner-Coroner have identified the body of a man who was found in a Canyon Country field Monday night.
Tuesday, Jul 17, 2018
Santa Clarita Man Gets 18 Months in Prison for Bribery, Attempted Extortion
LOS ANGELES – A former staffer for a member of the United States Congress was sentenced today to 18 months in prison for bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the city of Compton.
Monday, Jul 16, 2018
Canyon Country Mobile Home Park Cited for Hillside Solar Panels
The city of Santa Clarita's Community Preservation Division sent a notice of violation Monday to the owners of the Canyon View Mobile Home Estates property in Canyon Country, ordering the removal of multiple solar panels installed on the hillside just north of the park.
Keep Up With Our Facebook

Latest Additions to SCVNews.com
Officials at the Los Angeles County Department of Medical Examiner-Coroner have identified the body of a man who was found in a Canyon Country field Monday night.
Coroner Identifies Body of Man Found in Canyon Country
Single Mother's Outreach is currently accepting honoree nominations and artist applications through July 30.
Single Mother’s Outreach Accepting Nominees, Artist Applications
The Stay Green Inc. team has been rewarded for its excellence with eight awards — including four prestigious first-place honors — in the 59th Annual Landscape Beautification Awards presented by the San Fernando Valley Chapter of the California Landscape Contractors Association (CLCA).
Stay Green Earns Four First-Place Landscape Honors
Here is the list of Santa Clarita arts-related events for July 18-20:
July 18-20: Santa Clarita Arts Calendar
The city of Santa Clarita saw an increase in on-location filming in Fiscal Year 2017-2018 (July 2017 to June 2018), with the Film Office recording 560 film permits and 1377 film days, which generated an estimated $33.1 million in economic impact to the local community.
Santa Clarita Sees Increase in On-Location Filming for Fifth Straight Year
Six Santa Clarita Artists Association members were accepted in the impressive La Galeria Gitana exhibit, "Around the World in 80 Paintings."
Aug. 11: Artists Association Presents, ‘Around the World in 80 Paintings’
LOS ANGELES – A former staffer for a member of the United States Congress was sentenced today to 18 months in prison for bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the city of Compton.
Santa Clarita Man Gets 18 Months in Prison for Bribery, Attempted Extortion
1834 - Sinforosa, daughter of Narciso and Crisanta, born at Mission San Fernando; mom from Tejon, dad from Piru; believed to be last speaker of Tataviam language (died 1915) [record]
Berry Petroleum Corp., owner of the Placerita oil field west of Sierra Highway between Placerita Canyon Road and Golden Valley Road in Santa Clarita - and many other oil properties in the San Joaquin Valley - announced Monday that it has launched an initial public offering of its common stock.
Placerita Oil Field Owner Going Public Again
The U.S. Food and Drug Administration is alerting health care professionals and patients of a voluntary recall of several drug products containing the active ingredient Valsartan, used to treat high blood pressure and heart failure.
Blood Pressure Medicine Valsartan Recalled for Cancer-Causing Impurity
The next regular meeting of the Governing Board of the William S. Hart Union High School District is Wednesday, July 18 at the Administrative Center, 21380 Centre Pointe Parkway, Santa Clarita 91350.
July 18: Hart District Governing Board Regular Meeting
The Canyon Country Advisory Committee, a division of the Santa Clarita City Council, will hold its next meeting on Wednesday, July 18, from 7 p.m. to 9 p.m.
July 18: Canyon Country Advisory Committee Meeting
Since April, TMU grad Zach Klindworth has worked and trained with a soccer team in Iceland, 4,000 miles from Santa Clarita, the only city he'd ever known.
TMU Soccer Alum Zach Klindworth Takes Talents to Iceland
The Lancaster JetHawks scored a run in the seventh inning to take the lead and hung on to beat Lake Elsinore, 3-2, Sunday evening at The Hangar.
JetHawks Hang on for Sunday Win Over Storm
Lake Elsinore proved too much for the JetHawks Saturday night, handing Lancaster an 11-4 loss at The Hangar.
Lancaster JetHawks Overcome by Storm Saturday
The Lancaster JetHawks opened up a four-game series with a 6-2 win over the Lake Elsinore Storm in front of 4,348 at The Hangar Friday night to kick off Star Wars Weekend.
The Force With JetHawks in Friday Win Over Storm
Saxtravaganza, Santa Clarita's all-saxophone chamber ensemble, will play a free concert at Hart Hall (inside Hart Park) on Thursday, July 19, starting at 7 p.m.
July 19: Saxtravaganza Chamber Ensemble Returns to Hart Hall
Members of the Boys & Girls Club of Santa Clarita Valley will participate in the semi-annual Pinewood Derby at the Newhall Clubhouse on Wednesday, July 18 starting at 4:30 p.m.
July 18: SCV Boys & Girls Club Pinewood Derby
The city of Santa Clarita's Community Preservation Division sent a notice of violation Monday to the owners of the Canyon View Mobile Home Estates property in Canyon Country, ordering the removal of multiple solar panels installed on the hillside just north of the park.
Canyon Country Mobile Home Park Cited for Hillside Solar Panels
Ingrid Moon, a sixth-grade science facilitator at tuition-free public charter school iLEAD Encino, and Kimberli Lengning, a facilitator at iLEAD Lancaster, have been named Distinguished STEM Educators by Columbia University.
iLEAD Science Facilitators Named Distinguished STEM Educators
The city of Santa Clarita has updated the list of productions shooting in the city and the Santa Clarita Valley the week of July 16-22, 2018.
‘Mayans,’ ‘Santa Clarita Diet,’ Spots, Student Films Now Shooting in SCV
The Greater Los Angeles County Vector Control District confirmed West Nile virus in a sample of mosquitoes collected from Panorama City (zip code 91402), the first confirmation of WNV activity in the district’s service area this year.
First West Nile Positive Mosquitoes Found – Panorama City
Air quality is very unhealthy for all residents of the Santa Clarita Valley Monday, according to an alert from the South Coast Air Quality Management District.
AQMD: Air Quality Very Unhealthy Monday for SCV Residents
Santa Clarita Valley Sheriff's Station deputies arrested a man with an outstanding warrant who was allegedly also in possession of drugs in Stevenson Ranch early Saturday morning.
Golden Valley High School grad U.S. Air Force Airman Victoria A. Arguello has graduated from basic military training at Joint Base San Antonio-Lackland, San Antonio, Texas.
Santa Clarita USAF Airman Victoria Arguello Completes Basic Training
1925 - Actor Harry Carey files patent on the original 160-acre Saugus homestead he'd purchased in 1916 (now Tesoro Del Valle) [story]
1891 - R.E. Nickel publishes area's first newspaper, The Acton Rooster [story]
Stay out of the water at Pyramid Lake in Los Angeles County until further notice and avoid eating fish from the lake due to the presence of blue-green algae.
Algae in Pyramid Lake at ‘Danger’ Level – Keep Out
1769 - Portolá party sets out from San Diego; first Europeans to "discover" Santa Clarita Valley 3½ weeks later [story]
The CTG Stars teenage summer workshop production of "Shrek: The Musical, Jr." takes the stage at the Canyon Theatre Guild in Old Town Newhall for two final performances on Saturday night and Sunday afternoon.
July 14-15: CTG Stars Teen Workshop Stages ‘Shrek: The Musical Jr.’
The William S. Hart Museum will host an open house and summer fun event for kids on Thursday, July 19 from 10 a.m. to 1 p.m.
July 19: Open House, Summer Fun Event for Kids at Hart Museum
College of the Canyons will accept an additional 500 students to its First-Year Promise program for the fall 2018 semester, an expansion made possible by funding from a new state program called California College Promise.
COC to Accept 500 More First-Year Promise Students
The city of Santa Clarita invites residents to explore the newest exhibit at the Westfield Valencia Town Center Art Space -- “Urban Objects” by artist Aaron Kramer, on display now through October 2.
‘Urban Objects’ by Aaron Kramer on Display at Town Center Art Space
Bank of Santa Clarita announced Friday that for the second quarter of 2018, earnings again reached record levels, as net earnings totaled $867,000, a 91 percent growth over its earnings for the second quarter of 2017.
Bank of Santa Clarita’s Earnings Continue to Grow Significantly
Los Angeles County voters may soon be asked to vote on a new "parcel" tax to be levied on private property owners' "impenetrable areas" -- everything from rooftops to driveways -- to help pay for the capture of recyclable stormwater runoff.
Supes Float New Tax on Roofs, Driveways, Patios
In an effort to keep property crime in the Santa Clarita Valley low and help residents protect their valuables, the city of Santa Clarita and the SCV Sheriff’s Station have partnered to bring a new public safety campaign to the city called 'The Stolen Collection.'
Don’t Let Your Items Become Part of ‘The Stolen Collection’