WAMU 2nd mortgage can they foreclose?

[andigirl]

Hello
I have both of my mortgages with WAMU. It is a privately invested loan by Duetsch (spelling) If I don't pay on the 2nd mortgage but I stay current on the 2nd can they initiate foreclosure? If I have a homestead on my home what is the worst (besides reporting to my credit) that the investor or lender could do? I am hearing a lot of times they just go away or they may be more apt to take the $1,000 as payment in full if you aren't paying on it. I understand this isn't the way to go but it is an option that would allow me to keep my home for my family and still afford it. Any info would be appreciated!
andigirl

[The Professor]

Please answer the following questions:

1. What state is the property located in?
2. What is your estimate of the home's current value?
3. For each loan on the property, identify the lender, the current balance, and whether the loan was created at the time you purchased the home and the entire loan proceeds utilized to buy the home.
4. Have you occupied the home as your primary residence since purchasing it?


Daniel

[andigirl]

Hi Daniel
Thank you for responding. Here are the answers to your questions
1. California
2. $235k- I owe $360k
3. My 1st is WAMU for $288k my 2nd is WAMU for $72k These are refi loans as when i bought i was in a neg am i needed to get out of but i did take some cash out when i did the refi. They have a private investor of Duetsch(spelling again)
4. yes it is my primary residence for the last 4 years

something else to note is that they did do a note mod (in march) for me because i was in an adjustable rate mortgage. my situation since my loan mod continues to get worse. i am a realtor in ca. (i know that is bad enough) my husband continues to have illness and/or injury one after another and he was a self employed contractor so we are now down his income( no disibility or workmans comp). The note mod cost me more money and really put me in the hole. They messed up the timing of when they sent out the package so i had to pay the "comitment fee" and the mortgage payment all at the same time which was more than my original mortgage was before they modified it not to mention i had previously had an auto pay which after i joined your forum i cancelled. Funny they never got my cancellation so they drafted my acount again! I had asked for a impounded note mod which they didn't do and now i have to pay taxes on top of everything else tomorrow. This is not the way I wanted to do it but if push came to shove i want to know if i don't pay the 2nd can they start the foreclosure process.
thanks,
andigirl

[The Professor]

The short answer is yes they can. The practical answer is given the fact that their second is entirely underwater, they won't. They will somewhat impatiently wait to see what happens. When you get to a point where you walk and the first foreclosues, or want to sell the home, then they will be a challenge you will have to face. Know given the non-recourse nature of their debt they will not go away and it would be best for you to seek a discounted settlement at a time where your assets and income justify a sizeable discount.

Ah yes, tomorrow is April 10th. Thankfully I paid both installments in December.

Take care and know that your situation is far from unique.

Daniel

[andigirl]

Daniel,
I cant tell you how valuable your website is. I have refered many people here. I have some knowledge but sometimes don't have the answers. Your forum has helped me obtain a loan mod. *** gave me the phone number I had never had access to and that was the phone number and call that got me modified! I think you guys are Fabulous.
Thanks for sharing all of your valuable knowledge.
Andigirl

[The Professor]

It is not my website. It is your website. I just hang around because I like playing the role of an armchair quarterback. Having no "skin in the game" this time around relative to employment status (I'm occupying an office in an ivy covered building, living outside of the realities with tenure protections afforded by the California Education Code), I get to school all of you for the simple pleasure of doing so. Hopefully I'm schooling some of your lender's employees too so they can do their job better, but I suspect that I'm living in a dream world in that regard.

Daniel

[maxx233]

Professor,
I've never been a fan of our tenure system because for the most part I see positions occupied by people who somewhere along the road seem to have decided they generally dislike everybody and no longer wish to actually endow others with knowledge - yet they retain the position because of tenure. So it's really nice to see someone who really does enjoy educating others, and I commend you for that! Thanks for all the help you've given and continue to give, it's very much appreciated!

maxx

[The Professor]

Having tenure provides the opportunity to keep administrators in check. I've been known to explain to administrators the nature of their "at will" employment.

Daniel