Wamu Success!!

[PAC1010]

I was in an almost identical situation in VA. My credit still had some dings (FICO around 600) and property values had dropped since we took out the loan. I was in a WAMU 2yr ARM at 9.4% about to adjust to 10.8% on a $660,000 note on a house that was now worth about $700,000 (down from the $800K when we did the loan). My mortgage was going to jump from $5,500/month to $6,400/month. I called WAMU and told them my situation and that I could rent a simular house in my neighborhood for around $3,800/month. I told them that I would be better served to not pay my mortage for 4 months and save up the $25,000 and then go rent. My credit would take a huge hit but I would save $2,700/month and have$25K in the bank. We agreed that neither of us wanted to take that route and that it was in their best interest and mine to modify my loan. It took about 60 days but once I got them all of the paperwork (paystubs, tax returns etc.) it took them less than 6 hrs to change my loan to a 30 yr fixed rate at 6.8%. My mortgage payment went from $6,400/month to $4,300/month with no pre-payment if I want to refinance. Yes it is more than a rental would have cost me, but I did not lose my home and can now get back on track with things. WAMU's early loss mitigation was great to work with. I think that the key was calling them first and stayed on them rather than waiting on them to get with me. From some of the horror stories that I have heard I am quite pleased with what they did.

[PAC1010]

Hoodcana 1

I got a call from the agent handling my account last week. He told me to expect the loan mod paperwork within 7 to 10 days. That I needed to sign it, get it notorized and send in a cerified check for $543 in closing costs. I am expecting the paperwork this week.

As for my monthly deficit it was about $225/month at the $5,500/month rate.

I believe that it may have been a Long Beach mortgage (not positive) but we always worked with WAMU.

[PAC1010]

I got a call from my WAMU loan modifier today, saying that the paperwork that I thought was on the way was kicked back. Apparently he did not have the approval that he thought because my principle increase would have been $23,000. However, he said if I am willing to put up $3,000 (rather than the $543) it would get me below some magical $20,000 principle increase # and he could not only get the loan modification done, he could also get me an even better rate (5 7/8 on a 30 yr fixed loan). This would bring my payments down to $3,950/month ($400 less than thieir first offer and $2,500 less than it would have been after the adjustent). Thankfully I have the $3k and told them that I could do it. In the long run the savings far exceeds the extra money down. I asked them to overnight the paperwork and will call them tomorrow to make sure that it does not change again. Not to be sceptical, but I will believe it when I have the paperwork in hand. My fear is that I will get another call tomorrow saying, that they cannot do the loan modification unless I prepay $10K or something along those lines. I guess I will need to worry a little longer, untill the paperwork is signed and notorized and sent back.

If the paperwork comes through and the 3000.00 + does that kind of magic, I would take it and not look back. They are trying at WAMU and from what I have seen they are trying to do the best that they can with the investor base that they have and the borrower's needs.

I have not experienced WAMU lying like a few of the others out there.

[PAC1010]

Keep your head up on these loan modifications, the systems does work.

I recieved the paperwork yesterday for the WAMU modification. For $3,500 they lowered my rate from 10.8% (that could have gone as high as 15%) to 5.66% for the remaining 27.5 months of the loan. Our payments went from $6,400 to $3,990 with no payment is due until June 1. I was able to save the money that I would have paid for March, April and May (about $19,200 at the adjusted rate) and my mortgage drops by $2,400/month. I could not be happier with the outcome.

WAMU will work with you if you are pro-active and stay on top of them. The key is to call them first and keep emotion out of it when dealing with them. They really do want to help you rather than take back a home which they will not be able to sell. I hope that everyones situation works out like ours did.

PAC1010

[Moe Bedard]

PAC1010,


Congratulations!!!!! That is an AWESOME rate!!!!!

Good For You!!!!!