WAMU doozy of a debacle

[sojainMI]

First let me say how much I appreciate this forum. I have spent the last 2 days reading as much as I can. I still have not found anyone else here with quite the same problem as us.

Here is our story in a nutshell.

Purchased home 11/2000

Refi'd 3/04 when husband was sick with cancer to put in my name only, just as a safeguard. I qualified with no problem, as I was a mortgage processcor. We only borrowed max LTV of 75% to get some cash out to help us through hard times and pay some medical bills. Refi was for $190,000.00. Appraisal was for $265,000.

Husband lost our family business when he was sick. Literally lost $100,000 in income per year in 1 week. Ouch. We filed for BK, gave back both cars, toys, everything in CH 7. and received discharge 5/2005.

We did not reaffirm house, which was an option ARM. BK actually discharged house also. WAMU realized mistake and filed initial paperwork to foreclose on property. Trustee of BK case closed file with neither WAMU nor us owning home that was discharged.

Our last payment on the house was 11/2006. Tried to refi to clear title and keep home in 2007. New mortgage company called WAMU for a payoff. Told it was discharged. Zero balance. Called WAMU for months trying to talk to someone. Our file was literally lost they told me. HHhmmmmmmm?

Fast forward to July 2007, WAMU began foreclosure process again. After being delayed many times, house finally went to sherrif auction September 14,2007. Big surprise, no one bought house with new balance of $242,000 with all extra fees. We are from Michigan, housing market has tanked here. House is now worth maybe $125,000 due to economy.

We are now still in the redemption period of 12 months due to having more than 5 acres.

WAMU's attorneys who handled foreclosure, and WAMU both stated they do not want house. They are willing to work with us for a resolution. We now qualify for a new loan, FHA, to buy house back. Problem is it is not a refi, since house was in my name only, and is now going back into husband name due to my credit with foreclosure on it!!!!!!! It is not a purchase since he is on the deed only, not mortgage. According to WAMU they will take a short sale, because thay agree house is not worth what is owed and they already wrote loan off in BK. Any money they get is extra.

We do not qualify for a modification with WAMU with all this extra stuff thrown in. It is not a purchase, it is not a refi. Even WAMU's attorney, WAMU and their appointed Community Outreach Director hired to handle foreclosures and short sales in MI, no one knows what to do.

We have been in this house for 8 years. Love this house, and have the ability to make payments on this house, no problem. We are just not willing to pay double what it is worth.

I hope I explained everything right, I know it is confusing. And yes I have talked to attorneys, real estate attorneys, etc. Short of taking the United States BK Court to court, calling the trustee, judge, attorneys to testify under oath that they made a mistake, we do not know what to do. Attorneys around here won't touch this case. Way too complicated.

I am sending a qualified written request to WAMU today. WAMU's position now according to Community OUtreach Director is for us to submit a short sale package, and go from there. Remember in 2007 I tried to refi and WAMU would not let me since it was discharged?

Please comment on what you think we should do. Good news is since we have been mtg payment free for over 2 years, we have paid all our debt off, and are back on track.

Any ideas?

[The Professor]

Since you are no longer liable for the debt due to your excellent decision not to reaffirm, I take it that the property is unmarketable until the one year redemption period expires. which will be in September. The approach I'd be looking at is that your husband purchase it in a sale from WAMU for its current market value, seeking to obtain seller provided financing with you providing a reasonable down payment.

This would be a "sale." The title as I understand it is in WAMU's name with you having a short term contingent claim in the form of a potential redemption that will expire in September. Structure it that way.

Daniel

[sojainMI]

That is pretty much what I have been trying to do for 2 years. A lot of sending info into them again and again and then not getting a response.

Does anyone have any other contact info for WAMU other than those phone numbers? Like an email address or correct mailing address. I have sent certified letters before, no one knows what happens to them.

[Moe Bedard]

Here are the contacts I have for WaMu..............hope this helps you.......

Washington Mutual
Loss Mitigation
1-877-533-8960

[sojainMI]

Thank you ***, emails sent. Off to post office soon to mail my QWR certified, with return receipt.

Daniel, what do you mean by seller provided financing?

[sojainMI]

Wow I just spent an hour or so looking up what knid of house I could get for what WAMU says I owe. And let me tell you it is a lot! Try a 3500 sq foot/4bed/2.5 bath on a lake for around $250,000. These homes were easily selling for $500,000 to $1 Mil just 2 years ago. You could not get a lot on a lake around here for $250,000 back then.

We might be moving. Soon. I have found about 10 houses I would really consider all under $100,000.

Since our loan was in our BK, we will not be liable for anything if we walk by the end of our redemption period.

[The Professor]

Seller provided financing means WAMU provided financing, since they are now the owner and will be the seller. All you possess is a 'right of redemption' which is over in a little over a month.

Daniel