| WAMU Servicing and/or Fannie Mae WON'T Modify my Neg AM Loan?
Good Day....
Forgive me as I am brand new at this but I figured I would give it a try as I have nothing to lose. I might even learn something here.
Here goes...
I have a NEG AM Loan through WAMU and Fannie Mae is the investor. The house is now worth about $430,00.00 at best and the original principle owing was $322,500 in February 2004 and now has risen to $333,391 and about to reset on April 1, 2009 to pay off in 25 years. I am now well educated on how the NEG AM works but of course the broker from WAMU didn't tell me how it works when she sold the loan to me.
Here's my dilema. My minimum payment is $1,435.00 which is not bad for now as this payment exceeds the current interest due at a rate of 4.70% (12 Month MTA) but not by much and will be going down again in the next two months to come. WAMU recently, or should I say Fannie Mae recently paid my past due real estate taxes which is okay as they have the right to do so to protect their interests. They originally wanted me to pay them back over a 12 month period which was obsurd as my minimum payment would have been $4,300 some odd dollars a month, so we agreed to a 36 month repayment schedule of $520.00 per month. WAMU or Fannie Mae also, naturally, started to escrow my monthly taxes of $904.00. Talk about a payment shock! My new minmum payment is now $2,860.00 and mind you that's only the minimum payment. I presently also have a second mortgage of $533.00 at 7.84% - 25 year fixed rate, no problem as Bank of America over the telephone without hesitation or any documentation from me whatsoever reduced the interest rate down to 5% and lowered that payment down to $418.00. Not much but it helps. However, since November 2008 I have been in contact with WAMU's Early Mitigation, Loss Mitigation and Modification Departments on several occasions to no avail. All I keep hearing is we can't help you because you are "current". I keep explaining to them over and over again that I won't be "current" much longer. My request to help still falls on deaf ears.
In April, when this mortgage resets, I've calculated that yet another $200.00 increase to the minimum payment is forthcoming. In November 2008, when I first started to get this loan modified, I sent off to WAMU a request for a modification and explained that my total mortgage payments exceed 70% of my total net income and was denied by Fannie Mae because I was "current". Thanks so much.
Why must we be forced to go late on our mortgage payments in order to get help? One would think that Fannie Mae, who is now owned by the people of this country, would see a NEG AM loan and want to rewrite them ASAP as they know all to well that 70% or so of them written are destined for foreclosure. I don't get it am I missing something here.
This is a good one and I have even explained this to WAMU as a last hope of desperation to get a modification. My mortgage with WAMU totals around $350,000 with the original principle plus real estate taxes they paid. This is how intelligent they are. A 25 year fixed rate at 5% on that amount with my monthly tax escrow of $904.00 is round about $2,900.00. Hello McFly - IT'S THE SAME as paying a NEG AM minimum payment of $2,860.00 as where the loan balance really goes nowhere but up when paying only the minimum payment and as each month passes a "Foreclosure" is coming down the tracks and God forbid if somehow I was lucky and able enough to continue paying the minimum required payments until the next 10 year anniversary reset date comes, my new minimum payment will be without a doubt unpayable to say the least. It's only a matter of time before they ruin me.
I'm considering contacting an attorney as I can only see a blood thirsty investor who either wants my home, wants to destroy me financially, destroy any decent credit I may still have or has a strong desire to suck every last dime of equity they legally can get out of my house. Thank God they can only go as high as 110% of the original principle amount!
They were cute also as I distincally remember that I had asked the WAMU broker if the loan was convertible and she snidelly replied "NO". How convient for WAMU and Fannie Mae. We know this loan, in a nutshell, is bad and they won't be able to convert it when they find out or come to find out that we are sucking them dry.
Any alternative advise or suggestions would be appreciated as I seemed to have exhausted myself in trying to get not only the simplest thing done but one that makes ALL logical sense for both parties involved.
Thanks,
Vinny
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