Resolved: My "walk" begins - Loan Modification Forum

NewDad · 09-29-2009, 12:20 PM

It took us a while to get there, but here we go.

Basics:

State: Colorado
Bank: WAMU/now Chase
Last payment made: July

We owe about what the house is worth, should anyone want to buy it. Which no one seems to. We've been trying for over a year, went through a tenant or two who wound up costing us more in damage than they saved us in the end. Ultimately we exhausted our savings paying into an interest-only loan, and finally we simply ran out of money. We're in another place we can afford already, so that's good.

We talked around short sale, but the effort vs. credit hit didn't make sense to us -- what's 100 points vs. 200, really, in this day and age -- and we especially don't want to give our financial info to the bank, who is attempting to collect a debt. Why do half their work for them?

We don't qualify for any of the mod programs, since we squeezed into the smaller house, making the other our "second" home. And frankly unless they reduced our payment by 90%, we can't afford any payment at all.

We also talked around a DIL, but they're so rare on this board I couldn't believe it, and asking the right people in my (quite small) county I found out no one here had EVER gotten one.

So, foreclosure it is. Fair's fair, the house is worth what we owe by any measure we could figure out, we don't want it, we can't keep paying on it. Colorado's a deficiency state, so they could come after us for the difference with a judgment in court. Absolute worst-case scenario, the maximum wage garnishment is still about a third of what our payment is, so even that's an improvement. Looks like much more likely they'd 1099C us, and we could do a payment plan with the IRS.

Thus far the response from the bank has been underwhelming. Three letters, EXACTLY the same, two of them even came on the same day, telling us we have "missed more than one monthly payment and are in danger of losing our house." No kidding.

The only other response was a note left on the house that an "independent field inspector" stopped by on behalf of WAMU. Not one phone call. I suppose I'd be interested in what they had to say if they called, but they haven't.

We're not looking forward to the legal notice in the newspaper, but there are worse reputation-killers in a small town than that. We don't need good credit, we have a roof over our heads, can make ends meet on the new place with what we make, and my truck's paid for. And know I feel darned fortunate about all that.

Anyhow, we'll see how long it takes.

Evan Bedard · 09-29-2009, 01:00 PM

Hi Newdad,

Quote:

We're not looking forward to the legal notice in the newspaper, but there are worse reputation-killers in a small town than that. We don't need good credit, we have a roof over our heads, can make ends meet on the new place with what we make, and my truck's paid for. And know I feel darned fortunate about all that.

Sorry to hear this, but I believe you made a very wise choice for you and your family. Since you already have a roof over your head you do not have to worry about finding another home, plus what good is credit these days as long as you have what you need to survive (home,car,food,etc)..

Enough Already · 09-29-2009, 05:10 PM

Hi NewDad,

Glad you were able to make a decision you can live with. Since you owe what the house is worth I don't think you'll have to worry about the bank coming after you. The foreclosure should satisfy the debt.

Good luck! Please keep us posted.

NewDad · 10-05-2009, 02:33 PM

Received another letter today, basically saying the same thing as the first three. And of course a second copy of said letter in another envelope.

I missed the postman, but he had something I had to sign for which I should see tomorrow... probably a third copy of the same letter, if past is any prologue.

Included in the letter(s) was a "Notice of Collection Activity," which said "this correspondence is to notify you that you are in default under the terms..." So I guess that qualifies as an NOD? Also says they will accelerate the loan if I don't cure in 30 days.

Only other new thing was the end of the notice included the direct line to the Loss Mitigation Dept (877-533-8960). I suppose I could call that line and offer a DIL -- not "apply" for one, "offer" one -- but we'll see if I get to that.

I find it interesting all these letters are pre-dated -- the first one, for example, was dated the 9th of the month on the letter, postmarked the 15th, and received the 18th. The most recent one is dated the 29th, but received today -- and this time no date on the postmark, it's metered mail.

Enough Already · 10-05-2009, 04:57 PM

Quote:

Originally Posted by NewDad

Included in the letter(s) was a "Notice of Collection Activity," which said "this correspondence is to notify you that you are in default under the terms..." So I guess that qualifies as an NOD? Also says they will accelerate the loan if I don't cure in 30 days.

Hi NewDad,

I don't think that's the NOD. It sounds like it's just an intent to accelerate. We received a similar letter from Chase in April, stating they would accelerate on May 14th, if we didn't bring the loan current. That was 5 months ago and nothing yet.

Keep us posted

weneedpeace · 10-05-2009, 05:23 PM

NewDad,

We've also received the same, and I think like EA said - it's an intent to accelerate. They're giving you a defined period to remedy. We just received ours last week via certified mail. Oct 27th is the date we turn into a pumpkin.

Our home in question is also not our 'four walls'. We transferred with the military 19 months ago. We're in a 3 yr lease term with our landlord.

Reading your post, I really think you're making the best decision.

NewDad · 10-07-2009, 05:39 AM

Enough: Thanks, I guess I was concerned they were sneaking language in, but I think you're right.

weneedpeace: Thanks to you, too! Oddly my certified mail guy didn't stop by to leave a second notice yesterday, so still no idea what that was. Ah, as I look at it again, it's at the post office. Maybe I'll get over there today.

Enough Already · 10-07-2009, 07:54 AM

NewDad,
The certified mail could be the NOD. I'd go check. I know they do have to send that certified.

Some banks seem to be moving quickly with the foreclosures and others are just taking their time.

Keep us posted.

NewDad · 10-07-2009, 02:43 PM

SO glad I stood in line at the post office. It was, as predicted, two more copies of the most recent letter (the notice of collection activity).

I should look for work in the notice-sending industry.

NewDad · 11-03-2009, 01:54 PM

Called WAMU a while back, used the loss mitigation number on my last letter; I think they transfered me to another department, but no way to know for sure. Had a fun conversation with a woman who tried to convince me to pay her something today (no) or give her updated financial information (also, no). She actually beat me to the punch in suggesting a DIL.

Good idea, I said.

So she told me to go to the website and print out the form thing and mail it in. I filled out one page of it, the one with my name, a box that said "deed in lieu" to check and my loan number, and sent it in with a letter telling them I'd like to start the DIL process. None of the rest of it was relevant.

And, nothing.

Passed the 90-day mark some time ago. Nothing new; ever since I called WAMU and gave them the number, there have been calls on my cell phone a little less than once a day, from the same 800 number. I looked it up, it's WAMU's collections department.

I never answer. They never leave a message.

azhardspot · 11-03-2009, 02:04 PM

New Dad ...thx so much for posting your experience
this will be helpful to many

Enough Already · 11-03-2009, 05:31 PM

Hi NewDad,

That's the way these walk aways seem to go. There's a lot of anxiety leading up to making the decision, and then you make the jump and....not much happens.
It's a long road for many.

Glad it's going well. Please keep us posted.

EA

Isabel · 11-06-2009, 05:33 PM

What do you tell the callers when they call you?

NewDad · 11-06-2009, 07:42 PM

Quote:

Originally Posted by Isabel

What do you tell the callers when they call you?

Nothing so far. As a rule I've never picked up my cell phone for numbers I don't recognize -- even more so now that there's a baby in my arms more often than not.

The same 800 number called me several days in a row without leaving a message, so finally I Googled it and it appears to be WAMU/Chase. But if they never leave a message, I'll be damned if I'm calling back ... for all I know it could be a telemarketer, or my local city councilman who seems to think I need to hear a recorded message about everything he's been up to each month.

LexieMustang · 11-16-2009, 07:34 PM

Hi NewDad! Good luck on your situation, please keep us posted.

09-29-2009, 12:20 PM	#1 (permalink)
NewDad Member Join Date: Jul 2009 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Resolved: My "walk" begins It took us a while to get there, but here we go. Basics: State: Colorado Bank: WAMU/now Chase Last payment made: July We owe about what the house is worth, should anyone want to buy it. Which no one seems to. We've been trying for over a year, went through a tenant or two who wound up costing us more in damage than they saved us in the end. Ultimately we exhausted our savings paying into an interest-only loan, and finally we simply ran out of money. We're in another place we can afford already, so that's good. We talked around short sale, but the effort vs. credit hit didn't make sense to us -- what's 100 points vs. 200, really, in this day and age -- and we especially don't want to give our financial info to the bank, who is attempting to collect a debt. Why do half their work for them? We don't qualify for any of the mod programs, since we squeezed into the smaller house, making the other our "second" home. And frankly unless they reduced our payment by 90%, we can't afford any payment at all. We also talked around a DIL, but they're so rare on this board I couldn't believe it, and asking the right people in my (quite small) county I found out no one here had EVER gotten one. So, foreclosure it is. Fair's fair, the house is worth what we owe by any measure we could figure out, we don't want it, we can't keep paying on it. Colorado's a deficiency state, so they could come after us for the difference with a judgment in court. Absolute worst-case scenario, the maximum wage garnishment is still about a third of what our payment is, so even that's an improvement. Looks like much more likely they'd 1099C us, and we could do a payment plan with the IRS. Thus far the response from the bank has been underwhelming. Three letters, EXACTLY the same, two of them even came on the same day, telling us we have "missed more than one monthly payment and are in danger of losing our house." No kidding. The only other response was a note left on the house that an "independent field inspector" stopped by on behalf of WAMU. Not one phone call. I suppose I'd be interested in what they had to say if they called, but they haven't. We're not looking forward to the legal notice in the newspaper, but there are worse reputation-killers in a small town than that. We don't need good credit, we have a roof over our heads, can make ends meet on the new place with what we make, and my truck's paid for. And know I feel darned fortunate about all that. Anyhow, we'll see how long it takes.

09-29-2009, 05:10 PM	#3 (permalink)
Enough Already Senior Member Join Date: Jan 2009 Posts: 438 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins Hi NewDad, Glad you were able to make a decision you can live with. Since you owe what the house is worth I don't think you'll have to worry about the bank coming after you. The foreclosure should satisfy the debt. Good luck! Please keep us posted.

10-05-2009, 02:33 PM	#4 (permalink)
NewDad Member Join Date: Jul 2009 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Update Received another letter today, basically saying the same thing as the first three. And of course a second copy of said letter in another envelope. I missed the postman, but he had something I had to sign for which I should see tomorrow... probably a third copy of the same letter, if past is any prologue. Included in the letter(s) was a "Notice of Collection Activity," which said "this correspondence is to notify you that you are in default under the terms..." So I guess that qualifies as an NOD? Also says they will accelerate the loan if I don't cure in 30 days. Only other new thing was the end of the notice included the direct line to the Loss Mitigation Dept (877-533-8960). I suppose I could call that line and offer a DIL -- not "apply" for one, "offer" one -- but we'll see if I get to that. I find it interesting all these letters are pre-dated -- the first one, for example, was dated the 9th of the month on the letter, postmarked the 15th, and received the 18th. The most recent one is dated the 29th, but received today -- and this time no date on the postmark, it's metered mail.

10-05-2009, 05:23 PM	#6 (permalink)
weneedpeace Senior Member Join Date: Sep 2009 Posts: 69 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins NewDad, We've also received the same, and I think like EA said - it's an intent to accelerate. They're giving you a defined period to remedy. We just received ours last week via certified mail. Oct 27th is the date we turn into a pumpkin. Our home in question is also not our 'four walls'. We transferred with the military 19 months ago. We're in a 3 yr lease term with our landlord. Reading your post, I really think you're making the best decision.

10-07-2009, 05:39 AM	#7 (permalink)
NewDad Member Join Date: Jul 2009 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins Enough: Thanks, I guess I was concerned they were sneaking language in, but I think you're right. weneedpeace: Thanks to you, too! Oddly my certified mail guy didn't stop by to leave a second notice yesterday, so still no idea what that was. Ah, as I look at it again, it's at the post office. Maybe I'll get over there today.

10-07-2009, 07:54 AM	#8 (permalink)
Enough Already Senior Member Join Date: Jan 2009 Posts: 438 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins NewDad, The certified mail could be the NOD. I'd go check. I know they do have to send that certified. Some banks seem to be moving quickly with the foreclosures and others are just taking their time. Keep us posted.

10-07-2009, 02:43 PM	#9 (permalink)
NewDad Member Join Date: Jul 2009 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins SO glad I stood in line at the post office. It was, as predicted, two more copies of the most recent letter (the notice of collection activity). I should look for work in the notice-sending industry.

11-03-2009, 01:54 PM	#10 (permalink)
NewDad Member Join Date: Jul 2009 Posts: 28 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins Called WAMU a while back, used the loss mitigation number on my last letter; I think they transfered me to another department, but no way to know for sure. Had a fun conversation with a woman who tried to convince me to pay her something today (no) or give her updated financial information (also, no). She actually beat me to the punch in suggesting a DIL. Good idea, I said. So she told me to go to the website and print out the form thing and mail it in. I filled out one page of it, the one with my name, a box that said "deed in lieu" to check and my loan number, and sent it in with a letter telling them I'd like to start the DIL process. None of the rest of it was relevant. And, nothing. Passed the 90-day mark some time ago. Nothing new; ever since I called WAMU and gave them the number, there have been calls on my cell phone a little less than once a day, from the same 800 number. I looked it up, it's WAMU's collections department. I never answer. They never leave a message.

11-03-2009, 02:04 PM	#11 (permalink)
azhardspot Senior Member Join Date: Sep 2009 Posts: 34 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins New Dad ...thx so much for posting your experience this will be helpful to many

11-03-2009, 05:31 PM	#12 (permalink)
Enough Already Senior Member Join Date: Jan 2009 Posts: 438 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins Hi NewDad, That's the way these walk aways seem to go. There's a lot of anxiety leading up to making the decision, and then you make the jump and....not much happens. It's a long road for many. Glad it's going well. Please keep us posted. EA

11-06-2009, 05:33 PM	#13 (permalink)
Isabel Member Join Date: Oct 2009 Posts: 17 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins What do you tell the callers when they call you?

11-16-2009, 07:34 PM	#15 (permalink)
LexieMustang Member Join Date: Nov 2009 Location: Georgia Posts: 21 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Resolved: My "walk" begins Hi NewDad! Good luck on your situation, please keep us posted.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode