WAMU SUCCESS At Last!!

[Lisa in MN]

Hi everyone,
I am a long time lurker- mostly because I forgot my log in info
Anyway, we have been in our current situation since Oct 2006, when we refinanced one bad loan with HomEq for another with Fremont Investment and Loan ( now owned by Washington Mutual). Due to bad financial advice in 2001- we have gone from credit scores of close to 800 to God only knows what- because I don't want to even know, nor do I care, it really doesn't matter at this point.
Barely keeping our heads above water, both husband and i working 2 jobs, I approached WAMU in Dec 2007 when i knew I would be losing a contracting job of $1,000 a month. And of course got the answer I have seen so many times here before- they couldnt help us as long as we are current on our payments. I could not believe it so i called back 2 more times and was told the same thing. In March of this year a personal friend who is a CEO of a small local bank offered to do a short refinance for us, WAMU would not even negotiate because we were current on payments....sigh..... Offered an unmaneageable modification and we just said ok, we will mail them the keys- enough is enough- we have been living like this for almost 7 years.
So in April, we stopped making payments- I decided my family cannot live like this anymore and it is just a house ( albiet we have lived there for 17 years)
Cut to today- Sheriff showed up at the door and said sale date is 12/4/08 and gave us papers. Our friend the banker said to sit tight, this is a normal process and many banks are not even motivated to negotiate short sales, short refi's, whatever- this "early" in the process.
Our house has gone from an appraised value in Oct 2006 of $330,00 to May 2008- $225,000!!!(Realistic sales price in todays market might be $215,000 or so) We already over 100,000 under. We think there may have been some appraisal fraud because I find it hard to believe a home could drop that much in 18 months.So, for over a year WAMU has made 9.99% interest and the damn thing was set to readjust to 11.5 %!! Our payment is 2,592.00 no escrow or ins!!! Our banker has offered WAMU $165,000, and they have proceeded with foreclosure...... not good business sense, but then look at the situation they are in- surely not by using good business sense!
Anyway, I have been reading here for awhile and I am so glad to see we are not alone. Even though it is sad to think of potentially losing our house- and again it is the memorries like others have said- everything will work out ok in the end and we will be all be fine and together. I have to keep believeing that! The mortgage industry has made enough money off of my back these past few years, and I am exhausted trying to keep/improve a credit score that will never happen anyway due to debt/income ration- which will not change no matter how much we make payments on time, because we can only do the minimum- we will NEVER get ahead. (Now I read where potential employers check credit and that makes me nervous as hell to seek other employment!)

Wish us luck- we are on our way- wherever we end up!

Lisa in MN

[schwefls]

Hi Lisa:

I wanted to stop in and say hello, and yes you are correct you are not alone. Someone will be reaching out to you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.

[Lisa in MN]

Thank you. This craziness will end, whateve the outcome and I look forward to communicating with the board. Thanks for sharing all your stories, it is very brave.

Lisa

[Lisa in MN]

Also, I was wondering if it might be a good time to approach Chase rather than WAMU regarding acceptable load modification? How long does it take for all the business to transfer? I feel as if I need to DO SOMETHING rather than continue to wait, and wait and wait.....

[Moe Bedard]

Hi Lisa,

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

You should be receiving information from whomever is going to be servicing your loan.............you might want to check with WaMu and see if they know who that might be at this time............and go from there....


Please keep us posted on what you find out so that we can get you to the right dept. of whichever servicer that might be.

[Lisa in MN]

Hi all-I just finished my letter to WAMU and I will share it here. Let me know what you all think. I figure at this point I have NOTHING to lose. (Like the cleverly hidden identifying info with "X's" ? ) I sent it via email to every single email adress I found on here, and tomorrow I will send it certified mail as well.(BTW- denise.grey@wamu.netbounced back right away)
I figured I need to DO something even though we have a banker negotiating---I am no someone who can wait around and even if this letter sucks- I did something and stated my terms and will stand my ground.Like I said nothing to lose by approaching them as human beings.
I feel so much better just for hitting "send"- you have no idea.

Warm hugs to everyone struggling,

Lisa
Attention Customer Service
Subject: Loan number
Lxxxx A. and Bxxxx J Nxxxxx

XXXXX,
To Whom It May Concern:
This is a “Qualified Written Request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).
I am writing to request:
(1) Copies of all documents pertaining to the origination of my mortgage including my loan application, Right to Cancel, Deed of Trust, note, adjustable rate note, Truth in Lending statements, Good Faith Estimate (GFE), HUD 1, appraisal, and all required disclosures and rate sheets associated with this transaction for the above referenced loan. The copies should be legible and all documents shall be copied in their entirety..
I believe that our loan was given to us based on an inflated appraisal of our property done in October 2006 by Fremont Investment and Loan. The property appraised at $330,000 and was appraised in May 2008 at $225,000. The documents are needed for our Real Estate attorney’s review for other potential TILA violations
It is unfortunate that it has come to this because I contacted Washington Mutual customer service in December 2007 to try to work something out because I knew I would be losing a contracting job of 1,000 to 1,500 in additional income per month. I was told there was nothing for me because I was current on payments! I found this so incredibly hard to believe so I called back a second time, got a different person and asked again and was told the same thing. I was referred to the Early Loss Mitigation Department and sent all the required documentation Hardship Letter, etc…via fax. I called everyday for 2 weeks and was told they never received them. Yet by some miracle I was contacted on Memorial Day ( yes the holiday) to say our loan modification had been approved- I say miracle because it was approved with paperwork no one ever got a month ago! However this modification was unacceptable in the long term and would just keep us mired in the same situation we are in. In March 2008, we made the conscious decision to stop payment on our mortgage because we just could not live the way were living any longer. It was that month that I saw an article in our local paper from XXXXXXX Bank and the XXXXXXXX program. I contacted them and we were approved for the program. The facts are: Our mortgage is close to $300,000. Current appraised value of our home is $225,000, and a more likely sales price would be $210,000-$215,000. XXXXXXX offered $165,000 to Washington Mutual and as of this date it has not been accepted. This offer was based on loss to Washington Mutual if the house is foreclosed on, which now it is happening. We received notice this morning of the Sheriff’s Sale which is December 4^th, 2008.
We are interested in reaching an agreement on this situation prior to the actual foreclosure. I know XXXXXXX Bank has been in contact with you, but I am also interested in seeing if we can reach a mutually beneficial agreement. We want to keep our home if we can do this, but if we can’t we will be further investigating any possible TILA violations regarding the loan documentation, including the original appraised amount in 2006. We would like Washington Mutual to consider the following restructuring/modification of our mortgage:
Refinance the loan to reflect the current market ( not appraised) value of $210,000 at 6.5% interest fixed for 30 years, including taxes and insurance, without adding past due amount to loan. This results in a payment of approximately $1,650 a month. This is a monthly payment we can afford without relying on the second income, because it includes taxes and insurance which our current terms do not.
Many things led to this situation we are in, bad financial investments as well as advice that we now know was bad ( to roll all the debt from a bad business debt into our home in 2000),Job loss and poor money management all contributed. However, that is the past and we want to look to the future and do what is best for our happiness and that of our family.
I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.
In closing, we are not trying to get out of paying anything. If we were, we would have filed bankruptcy 8 years ago instead of starting this mortgage mess. We only want the loan modified and interest rate lowered to result in a reasonable payment we know we can live with, and that will not get us in trouble again.
Sincerely Yours,



Lisa Nelson
.

[Lisa in MN]

Thanks ***- I posted my letter to WAMU on another thread.
Lisa

[Moe Bedard]

Lisa,

I put the letter here to keep your story thread all together so we can follow it in one thread.........

Keep us posted on how it goes........

[Lisa in MN]

Thank you ***. I have taken tomorrow and Thursday off to deal with this. And I find myself SCARED to call WAMU- again it is the ashamed feeling. Has anyone else felt this way? Is this normal?
Lisa

[Lisa in MN]

Hi everyone,
I have decided to try to negotiate with WAMU on my own. We have been working with a local bank who was offering a "short refi" for us. I understand this is a lengthy process, whatever you ae trying to do, but I made my last mortgage payment in March, Sherifs sale is Dec 4th. WAMU told me yesterday they have NO RECORD of any contact by said bank in our file!
My question is this: What is everyone's opinion of attempting to get a principal reduction in addition to interest rate? I have sent a RESPA request to WAMU to have an attorney review for TILA violations which we believe ae there- the biggie being an inflated appraisal. 330,000 in Oct 06, 224,000 in April 08. I remember the mortgage broker saying he needed to see "how high" he could get the appraisal to come in at to see what debt could be included in our refi.) From what I understand, an attorney can halt the foreclosure process while conducting a document audit. So, I am hoping between us, Hope for Homeowners and all the stars aligning correctly, we will be able to work something out. Above is the letter I sent to WAMU requesting certian terms. I figure I have nothing to lose, and those are terms I can live with, period. Otherwise, take the house and I will rebuild my life.
Thank you all for listening and sharing.

Lisa

[Lisa in MN]

Off to FedEX to fax all the required documentation to WAMU. Via the email addresses here, i was contacted by the Executive Response Team, which is, I was told, above Loss Mitigation ( not sure I totally believe it) so I am headed in the right direction. I am also pasting a copy of the letter I am sending along with it. Any input is appreciated, but keep in mind, I will have already sent it. I just did what feels right, in a manner I was comfortable with with supporting documentation for my request. I will let the forum know what happens

October 24, 2008



From: Lxxxx and Bxxxx Nxxxxx
3942 Wxxxxxx Dxxxxxx
Re: Washington Mutual Home Loan #

To Whom It May Concern:

We are writing this letter to explain the circumstances that have caused us to become delinquent on our mortgage. It is not my intent to bore you with history, but I do feel it is important that you know at one time we were stable, middle class Americans with high FICO scores, who paid our bills, and saved for college like millions of others. and have been in our home for almost 18 years.

Things became an issue for us back in 2000 when we were given bad financial advice from someone we put our trust in to know what was best for us. Prior to that we had perfect credit and rather than file bankruptcy for a bad business venture, we let a mortgage broker talk us into rolling it all into our house, due to his insistence on what a bankruptcy would do to our credit score, etc. The domino effect has continued from that time and we have done what we can to make ends meet, from both of us getting second jobs to minimal spending, but unfortunately we are no longer able to do so and would like you to consider working with us to modify our loan.
In retrospect, we should have filed bankruptcy and not started messing with the mortgage. We now know we would be much better off with that damage to our credit score, (and it would be over by now) than the current situation we are in. We did attempt to contact WAMU in Dec of last year when we knew we were losing income, and would no longer be able to afford our mortgage. We were told by 2 separate customer service people there was nothing they could do because we were current. So, when we were unable to do it any longer, we stopped. A decision we did not take lightly and are not proud of, but we could not continue. Our meager savings have been depleted completely, and sources of credit have been exhausted. Since we have stopped, money has not been spent in a frivolous manner. We have paid thousands on other debt, needed car repairs (our cars are 9 and 15 years old), and most importantly, needed dental work for our child.
We strongly feel that a loan modification in the form of principle reduction and lowered interest rate under the Hope For Homeowners program would benefit us both. Our home’s value has dropped from $330,000 in October of 2006 to $235,000 (as a 30-day sale date) in May 2008, and from what I am reading, continuing to drop.
We would be grateful if you can work with us to lower our mortgage payment to one we can comfortably afford and not be in the same situation.
The unfortunate fact remains, if our payment remains over $1,650.00 (PITI, not just principal) the foreclosure will proceed as it is, and we will be moving on-Minus our home, but able to have some peace. This is the end of the line for us after many years of struggling.

We truly hope that you will consider working with us and we are anxious to get this settled.

Please find in this packet, the appraisals of our home from Oct 2006 and May 2008 . Although they were not requested, they are an important part of consideration and negotiation for the investor of our loan.

Respectfully Yours,

[Moe Bedard]

Lisa...............I can assure you that the emails and contacts that I put together here for the members of this forum are some of the highest level executives in each of the companies.........


Please keep us posted on your progress.......here in your original thread..

[Lisa in MN]

Thanks ***, I wasn't sure about where to post it, but I will continue to do so under this thread. So, Executive Response Team really is above Loss Mit like I was told? It was amazing, I actually talked to a kind, helpful person who apologized for all the run around and at the end of my diatribe said," It will all work out hon, don't you worry"( not a promise I know, but a kind, human/motherish comment) which of couse, made me cry.
Thanks for everything and I will update.
Do you have any comments on my letter?
Lisa

[Moe Bedard]

It looks good...........

Is there just the one lien on your property? Is this the only property you own?

[Lisa in MN]

***,
There is only this loan, no second or third, and no other property we own.


Lisa

[Moe Bedard]

Then you are the perfect candidate for the H4H............I hope they will participate.............

Please keep us posted............

[Lisa in MN]

I sure hope so! We truly are prepared to allow our home to go. I think this whole process is easier emotionally once you reach that point.It took awhile but we are there. Is the Executive response team higher up than Loss Mit as I was told? Also, someone from that team finally returned my call a few mins ago- i left messages last week. I have to remember how deluged they are with cases and remember to be patient.
Is the foreclosure stalled or delayed once you are being considered for modification?

Thanks *** you and this form have been a valuable source of information and support.

Lisa

[Moe Bedard]

Yes the executive team would be higher than loss mit..........and lenders treat the foreclosure process differently so you would need to check on that one...........most will work with you.........

[Lisa in MN]

Thanks ***. You know what I cannot understand? Seriously, why did they blow me off when I called last year knowing my income would be cut and we cannot afford the payments?? I did everything right....they all say call us before you get behind, every counseling agency says that too. I did and I was told they could not help me because I was current. So in some sense I feel like they deserve what they are getting. If they would have helped me a year ago , it never would have come to this... arg,,,, I guess they arent all failing due to good business practices.

[Lisa in MN]

Does anyone know if once the loan mod has started, does that stall the foreclosure process?

[Moe Bedard]

Lisa,

You would need to check that with WaMu...................each investor treats foreclosure differently.................most will work to put the date out while you are working on a modification............but some do not. So please call first thing tomorrow and check with WaMu to make sure that they will do that.

WaMu Loss Mitigation
1-866-926-8937

[Lisa in MN]

Hello all,
Just an FYI- got a letter from Chase Saturday saying our WAMU mortgage has been transferred to them. Not sure if this is the case for all but theyhave 30 days to inform you from Sept 25.

Hopefully this will make all our stuff go smoother than dealing with WAMU, have no clue.

Lisa

[tracercbd1]

Lisa,

We are in a similiar situation as you - loan with WAMU, had my hours cut 50% effective 8/1/08 (it was either that or no job at all), and on 9/30/08 husband lost job entirely.

We *knew* that in August, it would be very tough to make the payment, and since we are @ $200,000 upside down on our house (and didn't take out a crazy loan - we still put 20% down) we weren't able to make our October mortgage payment. Due to current economic conditions, can't get a HELOC, and can't refi - again $200,000 upside down on the house (Southern Cal.)

Same story...I contacted them about my impending hours cut, and they said there was nothing they could do until we were late. I just heard this morning that our package has been assigned to a clerk in Jacksonville, Florida. We sent our Loan Mod. package to them on October 15th via registered courier, the same day our mortgage payment was due. Even with expedited mail service, it took them from 10/15 to 10/21 to even log our paperwork into the system.

I too have been given the runaround when I call, but until late last week, I was always able to talk with someone who was very nice, albeit not always helpful, until I spoke last week with a very nasty woman in the Chatsworth, California office named "Rochelle". I have been calling once or twice per week, and Rochelle told me I was a "pest" and that I shouldn't call anymore - they would call me when they had something to say. I intend to put her name and employee ID number in the emails I intend to sent to the Executive Committee names/addresses *** so graciously listed on this site :~)

When I call, I make a point of asking whether or not the person I am speaking with is a WAMU employee, or an employee of Chase. ALL have indicated they still work for WAMU. I was also told that they are INUNDATED with loan mod applications, and it is taking at least 4-6 weeks, even LONGER to get any type of response. I don't know if it helps, Lisa, but we are certainly not alone. We'll all just have to wait and see.

[Lisa in MN]

Thanks for sharing. You know it is ridiculous, and I feel like I have reached the ppoint where I really dont care if they foreclose. Our credit is already shot, we havent made a payment in 6 months- it was shot before that but I am certian now it is WORSE. I am exhausted trying to play the "game" with WAMU, FICO, the whole 9 yards. I have been trying for over 8 years and I am DONE. I will wait to hear from WAMU- the ball is in thier court now, because I am done caring- sounds bad I know but my quality of life and that of my family will take top priority from now on.
Keep me posted on what happens for you. Actually, in retrospect, it is a good thing for me they wouldnt help me last year before I was delinquent- will probably get a much better deal now- if at all.

[Lisa in MN]

Well, still waiting to hear from WAMU. Faxed all paperwork to contact person on Oct 24th, and left a message for her yesterday and today to confirm reciept. In the interim, phone calls from WAMU collections have continued- some are nice, some are particularly nasty. When I explained to one lady we are waiting to hear on getting a moderator for a loan modification. She all but screamed that "You dont have time to wait, the sheriffs sale is scheduled for a month- do you WANT us to take your home?" I told her that frankly, they can have it because I have no joy here anymore- it is not a HOME-it is a HOUSE. Thanked her for her call and hung up. Another one told me she cant understand why we are still being called when there is a Sheriffs sale scheduled- she was the nicest one yet, verified contact info, apologized for poor customer service. Yet the calls continue. It is no wonder this company went under. Not one department knows what the other one is doing!
I will not be a pest with my contact at WAMU, I am sure they are inundated and will work on being patient.
Thanks again everyone
Lisa