American Home Mortgage Bounces Checks, Blames Chase Bank

It seems that bankrupt mortgage lenders are no different from bankrupt home owners. When they start bouncing checks they blame the bank, and hey, they might even be telling the truth.

From the Associated Press:

American Home Mortgage Investment Corp. bounced 564 property tax checks in Maryland but blamed other financial institutions for the problem, the state’s commissioner of financial regulation said Thursday.

The bankrupt mortgage lender responded Thursday to inquiries made last week by state regulators, saying the problems stemmed from the inadvertent freezing of bank accounts and a previously disclosed dispute with government-sponsored mortgage financier Freddie Mac.

While no one has lost their house yet in this situation, missed tax payments can lead to a tax lien and ultimately foreclosure on a property.

American Home Mortgage claimed JPMorgan Chase inadvertently froze escrow accounts that were supposed to be used to make the property tax payments, Bloom Raskin said. American Home said JPMorgan Chase thought it had an interest in the accounts, but unfroze the accounts when it realized it did not, according to Bloom Raskin.

A spokesman from JPMorgan Chase said the company was looking into the matter.

The accounts in question are protected from bankruptcy because they hold tax money collected by the mortgage servicer. AHM closed in August but continues to service its loans… when Chase allows it to access its accounts.

AHM Deflects Blame on Bounced Checks [AP]