Washington Mutual Home Loans - WAMU Bank Above Federal Loan Laws. Only The Peasants Must Comply, Not Us Banks! ripoff Seattle Washington
In 2003, while I was pregnant, unable to work and on dr. ordered bed rest, my husband decided to leave us and stopped paying the bills.
I filed a request with WAMU explaining my situation and asking them to move the remaining 5 payments, that would come due during the rest of my pregnancy, to the end of my note so that I could return to work [as a paralegal] once the baby was born and resume my financial responsibility with them. My request was ignored.
WAMU kept sending me notices they would foreclose if I didn't immediately pay up, but they never responded to my correspondence to them. They never called me or visited me to find out what could be done. Eventually, I borrowed money from a relative to retain an attorney to protect me and my unborn baby and our home.
I had originally sought and was approved for conventional financing. However, because I had qualified for the home loan on MY income only, I had sought a property that would have immediate equity. I was able to achieve this by purchasing a foreclosed home and renovating it. Since I wanted the renovation monies rolled into my loan, I had been advised to reject the conventional loan and pursue an FHA insured loan. FHA has a program for renovations known as the 203k section of HUD, and it is specifically designed to help roll in renovation money for folks buying fixer uppers.
As we progressed in our efforts to protect our home, my attorney informed me that since it was an FHA loan I had some federal protection under the law and WAMU was required by FHA/HUD regulations to contact me, meet with me, and establish a workable plan. None of this has ever happened.
About 4 months into my arrears, near the end of my pregnancy, my attorney had me to post a bond into the court in lieu of making mortgage payments into the court. He advised me NOT to make payments until we went to trial. On his advice I did not make payments for 39 months.
We were set to go to trial this month. However, last month WAMU moved in the district court for a summary judgment claiming that I was a leach, a deadbeat, just sitting up in their house not paying and trying to get something for nothing.
Nothing was mentioned about the facts. Such as: WAMU violated Federal Law in their handling my mortgage; WAMU marked my credit file with "foreclosure" 3 years ago! although we were not foreclosed; because of the derogatory credit marks, I have lost 2 job offers where the employer has specifically stated that was the reason.
There are many more crippling details to this case, but WAMU was able to stand in the courts in Dallas and convince the Judge that my lawsuit against them was frivilous and unsubstantiated simply because they made derogatory remarks about my character and my financial responsibilities.
I was NOT given an opportunity to be present before the Judge in the Motion for Summary Judgment. I have lost more than $90,000 in lost income because of their premature derogatory foreclosure remarks on my credit file, but that does not seem to be a consideration of the court. And the Judge was swayed of my character without ever meeting me or hearing a word from me although my biggest crimes were getting pregnant and then following the instructions of my attorney!
My attorney has told me we have lost and that we will have to move by the end of the month. But I thought I had recourse with HUD or an opportunity to sell my home, or something! And it seems they would have to serve me for a foreclosure, yet I haven't received any papers from WAMU or my attorney.
I have dozens of questions, particularly about my credit and the fact they have ruined me for more than 3 years already. Does WAMU just get to mess up my credit file forever? What about our judicial system? I am NOT convinced that our judicial system concerns itself with the average person at all, and when I file to protect my assets and my family why am I the bad guy in the Judge's final ruling on it? Did my attorney sell me out?
WAMU's assertion that I am just financially irresponsible and someone trying to take advantage of them seems like a tactic intended to deflect attention from them and the fact that it was THEY [WAMU] who violated Federal Law. It seems they believe the rules apply only to us poor slobs who are part of an economy designed to prevent us from accumulating wealth and force us to borrow money from them for the basics of life.
My experience with Washington Mutual has been exhausting to say the least. I would caution anyone seeking a home loan with them. And anyone seeking to use the 203k section of HUD for renovating a property, I would suggest that you push ALL of that paperwork in front of an attorney before signing on that mortgage.
Washington Mutual has earned a bad reputation here in Dallas for their despicable mortgage practices. I would that I had learned earlier rather than having to walk out a 3+ year hell with them.
Joyce
Dallas/Ft. Worth metroplex, Texas
U.S.A.
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4 Updates & Rebuttals
Cory
San Antonio,Texas,
U.S.A.
I'm Confused
#5Consumer Comment
Sun, October 22, 2006
First you requested wamu delay five months of payments, until the end of your pregnancy. So, that I could return to work... and resume my financial responsibilites". Then, based on your attorney's advice, you did not make a payment for THIRTY NINE MONTHS. What happened to the five months? What happened to "my financial responsibilites"? What did you expect to happen after not making payments for THIRTY NINE MONTHS? "WAMU kept sending me notices that they would foreclose...." "They never called me or visited me". They kept sending you notices. What did you want them to do? Show up with flowers? I think you got some bad advice from your attorney. You've had a string of bad luck. I wish you and your child well.
Thom
Albion,New York,
U.S.A.
Banks Don't Want to Foreclose
#5UPDATE Employee
Sat, October 21, 2006
The misnomer here is that banks want to foreclose on your home, which is simply untrue. It sounds as if your attorney is the one who deceived the homeowner, not Wamu.
I used to have to prepare the documentation for homes that were being foreclosed upon and as a parent of two children and having lived paycheck to paycheck for years I couldn't continue in the position because I was having nightmares about all these kids losing their homes. I asked for a transfer to another department and I was moved to mortgage collections and then loss mitigation so I could prevent people from losing homes.
From the little I know about your scenario it doesn't appear Wamu violated any laws. A pamphlet outlining the options for preventing a foreclosure was undoubtedly sent within the prescribed timeframe.
The worst thing anyone can do in a situation such as this is to panic and ignore correspondence. There is also no reason to pay money to an attorney when the mortgage company can use those funds as a down payment on a loan modification or other forbearance plan. The only time an attorney should be brought in is if there is a need for a Chapter 13 repayment plan.
That being said, another huge obstacle the homeowner faced was the business friendly i.e ruthless foreclosure laws in Texas. Anyone that has had to deal with Texas foreclosures will tell you that Texas has the worst laws in the nation with regard to foreclosure timeframes for filing etc.
The defamation and harsh language on her court papers, credit reports etc. is standard legalese and by no means meant to be taken personally.
Carol
Jacksonville,Florida,
U.S.A.
Homeowners Assistance
#5UPDATE EX-employee responds
Mon, October 02, 2006
In order to qualify for a loan modification, you must provide a documented ability to pay the payments after the modification. And, you must have partial funds as a down payment on the modification.
Mortgage investors, especially HUD/FHA, do not just add payments to the end of any loan. It appears that WaMu was working with you, because Texas is a power of sale state and it is probably the easiest state in the union to complete a foreclosure. You state you did not make a mortgage payment for over 39 months. Yet, WaMu was required by the investor of your loan (HUD), to remit payments of principal and interest to them every month. No mortgage company wants a foreclosure because it is costly to them because they will not be able to recoup the legal funds, etc. they have spent during your case. You may want to use the payment funds your attorney had you put in escrow and find a lease to own property that can be financed by the seller.
Karen
Perry Hall,Maryland,
U.S.A.
I understand
#5Consumer Comment
Sun, August 06, 2006
I understand exactly what you are talking about. I became disabled and wasnt able to work and they wouldn't work with me either.I begged and pleaded and they were rude when I was able to talk with them and ignorant to ignore my requests. This company is very bad and I will never do business with them again no matter how big they are. Read my posting about insurance ripoff. You will see this company has screwed me to. Much luck.
Karen