A Florida trust says Chase added unexplained charges to a HELOC payoff and refused to update it—blocking the sale of a foreclosed home
A Florida property owner is suing JPMorgan Chase, saying the bank padded a Home Equity Line of Credit (HELOC) payoff and delayed a property sale by refusing to update it.
The lawsuit, filed July 15 in the Southern District of Florida, was brought by Ben Kunzle Trust, LLC. According to the complaint, Chase included more than $7,000 in unexplained charges in a March 2024 HELOC payoff statement and then failed to provide updated statements despite repeated written requests. The trust claims the delays left a cloud on the title and prevented it from selling the property.
No court has ruled on the case yet, and the allegations are unproven. But the situation could have implications for mortgage professionals working in servicing, foreclosure recovery, and title clearance.
According to the complaint, the trust purchased the residential property—located at 9354 Arborwood Circle in Davie, Florida—on March 15, 2024, through a homeowners’ association foreclosure. The home remained encumbered by two loans: a first mortgage and a HELOC, both originally issued by Washington Mutual. The plaintiff says that Chase acquired both loans after Washington Mutual’s failure in 2008.
Soon after the acquisition, the plaintiff says it asked Chase for payoff statements to clear the liens. On March 22, 2024, Chase allegedly provided a payoff statement for the HELOC showing a total payoff amount of $33,326.79, including a $7,301.61 charge labeled “Corporate Advance Balance.” The complaint states that this charge was not itemized or explained and was not authorized by the HELOC agreement.
The plaintiff claims the payoff statement didn’t break down what the “Corporate Advance” was for, when the charges were incurred, or how they were calculated. The document included no information about whether the charges could be disputed.
Between May 20, 2024, and May 13, 2025, the trust says it made multiple additional written requests for updated payoff statements. In one response dated June 10, 2024, Chase allegedly told the trust to contact the former property owner, Steven Smith, for a copy—despite the trust having already provided a certificate of title and proof of ownership.
Chase did provide a payoff for the first mortgage on June 11, 2024, which the trust paid. A satisfaction of mortgage for the first loan was recorded around July 12. But the complaint says no updated payoff was ever issued for the HELOC.
The plaintiff alleges that without an updated HELOC payoff, it couldn’t sell the property, and that it incurred ongoing costs to carry it—including lost opportunities in a changing market. The trust also says Chase’s refusal to provide the statement caused delays and legal uncertainty around the property’s title.
The complaint cites violations of Florida Statute § 701.04, which requires mortgage servicers to provide accurate payoff figures within 10 days of a written request, and § 559.72(9) of the Florida Consumer Collection Practices Act, which prohibits collection of debts known to be invalid.
Ben Kunzle Trust is seeking class action certification to include other Florida property owners who may have received similar payoff statements from Chase containing “Corporate Advance Balance” charges that were not itemized or explained. The case requests actual damages, statutory damages, and attorney’s fees.
As of now, the lawsuit is pending, and no decision has been made.
For those on the servicing or compliance side of the mortgage industry, the case is a reminder that how payoff figures are handled—particularly in post-foreclosure or title-sensitive situations—can quickly become a bigger issue.
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