header image

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

Inside
Weather
Santa Clarita CA
Mostly cloudy
Mostly cloudy
64°F
 
Calendar
Today in
S.C.V. History
December 6
1864 - Actor William S. Hart born in Newburgh, New York [Hart Index]
Wm. S. Hart


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
Monday, Dec 6, 2021
Historical Society Seeking Donations for Stolen Train Whistle
The Santa Clarita Valley Historical Society is seeking donations to replace the original brass, 6-chime train whistle, which was stolen years ago from the Historical Society's vintage 1900 Southern Pacific locomotive.
Monday, Dec 6, 2021
Additional Omicron Case in L.A. County; New Travel Restrictions in Effect
The Los Angeles County Department of Public Health has received confirmation of an additional case of COVID-19 with mutations consistent with the new Omicron variant.
Friday, Dec 3, 2021
City Invites Community to Central Park Buildout Groundbreaking
The Santa Clarita City Council will take a major step toward enhancing one of the city of Santa Clarita’s landmark amenities by holding a groundbreaking ceremony for the Central Park Buildout project on Monday, Dec. 6.
Keep Up With Our Facebook

Latest Additions to SCVNews.com
The city of Santa Clarita’s Arts Division is excited to welcome “Creative Faces” to the First Floor Gallery at Santa Clarita City Hall.
Residents Encouraged to Explore ‘Creative Faces’ at City Hall
The city of Santa Clarita is encouraging interested and qualified residents to apply for an open commissioner position on the City’s Arts Commission.
City Accepting Applications for Arts Commissioner
The Santa Clarita Valley Historical Society is seeking donations to replace the original brass, 6-chime train whistle, which was stolen years ago from the Historical Society's vintage 1900 Southern Pacific locomotive.
Historical Society Seeking Donations for Stolen Train Whistle
The Los Angeles County Department of Public Health has received confirmation of an additional case of COVID-19 with mutations consistent with the new Omicron variant.
Additional Omicron Case in L.A. County; New Travel Restrictions in Effect
The city of Santa Clarita’s Film Office released the 15 productions currently filming in the Santa Clarita Valley for the week of Monday, Dec. 6 - Sunday, Dec. 12
Filming in Santa Clarita Includes 15 Productions
1864 - Actor William S. Hart born in Newburgh, New York [Hart Index]
Wm. S. Hart
1938 - Supervisors award construction contract for jail at Wayside Farms in Castaic (later called Pitchess Detention Center). [story]
Wayside
1962- Actress and future Soledad Canyon big-cat rescuer Tippi Hedren, "Hitchcock's New Grace Kelly," makes cover of Look magazine for upcoming thriller, "The Birds" [story]
Tippi Hedren
The Santa Clarita City Council will take a major step toward enhancing one of the city of Santa Clarita’s landmark amenities by holding a groundbreaking ceremony for the Central Park Buildout project on Monday, Dec. 6.
City Invites Community to Central Park Buildout Groundbreaking
Los Angeles County Department of Public Health officials confirmed Friday 17 new deaths and 1,942 new cases of COVID-19 countywide, with 39,281 total cases in the Santa Clarita Valley.
Friday COVID Roundup: Cases Among People Experiencing Homelessness Declines for 2nd Month in a Row
The city of Santa Clarita Planning Commission will hold its regular meeting Tuesday, Dec. 7 at 6:00 p.m.
Dec. 7: Planning Commission Regular Meeting
The first cohort of the College of the Canyons Low Observable Technician Pathway graduated on Nov. 23. 2021 at a special ceremony held at the college’s culinary arts center.
COC’s First Low Observable Technician Pathway Cohort Graduates
The Board of Trustees of the Santa Clarita Community College District is undergoing the redistricting process, and community members will have the opportunity to comment on revised trustee area boundaries at two upcoming public hearings.
Santa Clarita Community College District Board of Trustees Undergoing Redistricting
The California Highway Patrol joins the American Occupational Therapy Association in recognizing Dec. 6 through Dec. 10, 2021, as Older Driver Safety Awareness Week.
Dec. 6-10: 2021 Older Driver Safety Awareness Week
On Wednesday, Dec. 1, College of the Canyons held a ribbon-cutting ceremony for the Don Takeda Science Center, which is named in honor of longtime biology instructor Don Takeda, who retired in 2017.
COC Holds Ribbon Cutting Ceremony for Don Takeda Science Center
To help ring in the holiday season, Los Angeles County Supervisor Kathryn Barger hosted her annual party for foster youth served by the Department of Children and Family Services and their foster families at Six Flags Magic Mountain on Saturday, Dec. 4.
Supervisor Barger Hosts Annual Foster Youth Holiday Party at Six Flags
The Los Angeles County Lake Lifeguards begin the search for potential new lifeguard candidates with the Lake Lifeguard Test Saturday, Dec. 4 at the Castaic Aquatic Center.
Dec. 4: Lake Lifeguard Test Starts at the Castaic Aquatic Center
1887 - Prohibitionist Henry Needham purchases land in Newhall, attempts to establish "dry" colony [story]
H.C. Needham
The Los Angeles County Department of Public Health has received confirmation of its first case of COVID-19 with mutations consistent with the new Omicron variant (B.1.1.529).
Thursday COVID Roundup: First Case of Omicron Detected in L.A. County
Andrew Ghassemi, senior vice president of Spectrum Commercial Real Estate, Inc., is pleased to announce the recent sale of a Class-A office building in Valencia.
Spectrum Real Estate Closes on $3.5M Sale of Valencia Office Building
Metro Los Angeles celebrated the groundbreaking Wednesday for the I-5 North County Enhancements Project, which will improve the operations and safety of the I-5 freeway for motorists in the Santa Clarita Valley.
Interstate 5 Improvement Project Breaks Ground in Santa Clarita
Do you take the easy route with a bag and tissue paper because your wrapping job looks like a crumpled mess?
Learn How to Wrap Gifts Like a Pro Thanks to JCI Santa Clarita
Commercial driver’s licenses, learner’s permits, endorsements and special certificates expiring between March 2020 and February 2022, are automatically extended through Feb. 28, 2022, the California Department of Motor Vehicles announced Thursday.
DMV Extending Commercial Driver’s Licenses, Learner’s Permits
SCVNews.com
%d bloggers like this: