WaMu - Foreclosure letter from CHASE

[bpmlogix]

I'm sad to hear i'm not alone... but thanks for the forum!

Details:
Primary property:

1st: 30yr fixed at 6.375, no PMI, owe 175k, FMV 210K WaMu - FannieMae
2nd: 20k HELOC

2nd property:
Investment - Has great + cash flow
2/28yr ARM currently at 8.75, will reset in a few months. owe 300k, FMV 350K First Franklin / HLS

20k in fed/state taxes, 15k in credit card dept. FICO trashed

We were working with Loss Mit, and submitted a modification package around Jan 5th. On Jan 13th we received a letter from a local atty for debt validation and foreclosure procedings. After contacting Wamu 'foreclosure' dept. they acknowlege Loss Mit has assigned a negotiator and is working with my file.

Loan is currently over +90 ( i would have never let it get past 90 if I read this forum earlier! )

Anyway, to me the Wamu loan is fair, I'm not looking to reduce priciple or even interest rate. I just want to tack on the current past due balance on the backend and a possible forebearance untill I get a new job - unemployed for the last 4 months )

The rental is only 60days, and I can keep a rolling 60 because of + cash flow. It the ARM resets soon - my modification package will be sent tommorrow looking for a resonable 30yr fixed.

Question is: We need to prevent foreclosure on the primary. They will not accept any monthly payments at this point. When filling out the Financial budget sheet we are neg 1000 per month when I am not working, or 3000+ if I find a job with similar salary.

Concerned with a few things. It looks to me like I have TOO much equity in both properties. I feel like a great foreclosure target. I cant tap the equity because my credit rating is trashed, but they can foreclose and REO the property. Quite possibly come out ahead!

And if that is the case, what about a poison pill approach.... completely strip the property of value so a workout looks more attractive?

[Dan Bailey]

bpmlogix,
Glad you found the forum and posted. I'm surprised they wouldnt go for a forebearance on your first...that usually makes them more money.
*** or Moe will be by as soon as they can to give you some direction/advice on what may be the best move to make. Hang in there and good luck!

[Moe Bedard]

HI bpmlogix,


Welcome to the forum and thank you for joining.............


What you would need to see if they can qualify you for is called the Homesaver Advance..........it is a FannieMae program that will bring the loan current...........click on the link for the info
Media: News Releases > Fannie Mae Introduces HomeSaver Advance

WaMu Loss Mitigation
1-877-533-8960

[bpmlogix]

Thanks - I will look into that. Is it usefull to use a non-profit after I have sent my package in?

Update:

Today I missed a call from Wamu Executive team. I left a few voicemails at the direct line but have not heard back today. Tommorrow I will NOT miss that call.

Also, in the shuffle of calling Wamu back I was able to gather some details from someone at the 'foreclosure' dept.

1. The original person I sent the modification package details to was a person who just checks to make sure all documents needed have been sent. I must have passed that part, as they assigned a true negotiator to my file. ETA for contact was at least 3 weeks. I dont feel comfortable not talking to the negotiator for another 3 weeks!

2. As we discussed details I asked if there was anything I could do to prevent this moving forward. She stated if I pay the past due balance + atty fees to bring it current the loan would be re-instated.

Now the real dilema.... do I let it go until I get an aswer from the negotiator?

Or do I beg, borrow and whatever to get the balance paid off in 15 days.

A forbearance untill employed and tacking the balance on the principal would be the ideal situation, but I would like to prevent this from getting to the point of no return, which for me is calling the entire note due.

[Moe Bedard]

with your loan you may want to get the HomeSaver Advance approved and in place......through WaMu.......if they can do that it will bring the loan current.

[bpmlogix]

OK: ITs been a wild ride so far....

I have been assigned a negotiator at WAMU. Im rolling 60 days late on FF

Wamu/Chase filed foreclosure papers and we were served.

Im certainly on "the List" judging by the amount of vultures on my dead end street. We hired an attorney just in case we need to take protection matters.

And then the stimulas bill passes! Wow.

[Moe Bedard]

But first we need to see what the President is going to say about helping the foreclosure crisis tomorrow...............that should be interesting......

[bpmlogix]

Update:

So we were told we would have an answer from the negotiator by March 16th, but this was pushed back another 40 days (according to customer service)

They also suspended a sale date of April 18th because of the new package the president signed..... but this is heresay since I have not been told this by the negotiator.

Customer service also says the will reinstate the loan if we pay all late payments + atty fees .. but have not seen this in writing! I asked last month and never received it in writing. Today I asked again - and it was like pulling teeth to get them to agree to send a letter... which frankly I dont expect.

1. Has anyone else actually paid the past due balance and had the original loan reinstated?

2. What is the latest I can pull the trigger on bankruptcy? This is a last resort and I dont think I can wait another 40 days - I'm going crazy.

[Janeen]

The company you are working with or if you are doing the modification on your own, should call the lender & ask for the Trustee Sale Date to be postponed. Let them know you are still in the process of having your loan modification reviewed, as the date gets closer, they will usually postpone it for 30 days at a time. Don't assume they do this automatically....follow-up & ask what date they have on file.

[bpmlogix]

Well, I gave up seeking a loan mod. We had our atty contact WAMU/CHASE att that filed and paid the past due balance in full. So we are currently reinstated, but it looks to me WAMU/CHASE has no intentions of helping anyone.

I hope for others sake thats not the case.

Matter of fact I'm so irrated with these banks.....

Good luck all, I still have one more property to catch up on........

[bpmlogix]

Oh Yeah! My bank that holds my HELOC got wind of the forclosure filing and they called the 2nd note due. 20k in 3 weeks.....

I will talk to them monday, and let them know the foreclosure filing was vacated..... well see what happens.