In 2009 I tried to refinance my adjustable rate loan to a fixed rate- my payments were going way up. My house, in CA, was purchased for 613K in 2002- I put 220K down. I was told that my house was now worth about 400K and chase would not re-do the loan but that I could go through the mod process. I filled out the paperwork- approved for the trial payments starting July of 2009. End of 90 days received a letter only stating they needed more time and I needed to do another 90 days of trial payment (through December of 2009). I heard from the person in charge of my case in December of 2009, January of 2010 she was no longer there. I called weekely from Jan through Oct of 2010 trying to get a status. Every week was told that my request has been escalated- I would hear from someone- never did. On Oct 27th Chase sent a not stating that they were canceling my request because they didn't receive all my documentation. When calling, they couldn't tell me what documentation or when the request was made. "Pay 34K or we start to foreclose". They would not put the amount in writing- I batteled for 60 days trying to get answers- finally sent in the 34K. Now, they haven't applied the money, it is just sitting in Chase limbo. Can I sue? Pain and suffering? They have reported me late to credit agencies from the first month of the trial payment- isn't this illegal. I am pursuing the matter with my state- but what else can be done.

You can't sue for pain and suffering on a contract - and this is (basically) a contract. So, no, you can't.

If you made a late payment, yes, they can report that late payment to the credit bureaus; if you did not make a late payment they need to correct the info they submitted to the credit bureaus.

No, it's not illegal to report a late payment - if it was late.

You also have the ability to file an explanation with the credit bureaus, explaining why the payment was late (if it was).

I don't know what you mean by "they didn't apply the money." You sent $34,000 and it was never credited to you?

Depending on what is going on here that I may not understand I would consult with an Attorney.