Need help before they foreclose.

[jiminy]

What is the name of your state? Louisiana

My mortage is with Washington Mutual for $78,000 and payments of $780 per month. I fell behind on my payments after the hurricanes last summer due to the direct effect they had on my work. I tried keeping up with the payments and finally fell three months behind and they are in the process of a foreclosure. I tried making a payment to them to make the loan current (three months payments) but they would not let me do this. They said that I would have to pay all the late fees and attorney fees that have incurred. About $7000 is the amount they want to take it out of the foreclosure status. They offered to take a Loan Workout Application from me to try and make a payment plan for me on the $7000 and I filled this out three weeks ago. I contacted them several days later and they said that it had not been assigned to anyone yet and that it may take up to two weeks to do this and another two weeks or so for the person assigned to it to make a decision on the loan workout. All this time the amount I need to make them happy keeps going up and making it so that I cannnot afford to do this even with a loan workout. I have talked to HFC about refinancing but I have a 480 on my FICO which is horrible. Can Washington Mutual refuse to accept monthly payments even though they are not the amount needed to make the loan current? I feel like they are dragging their feet to make it so that I have no other option but to let it foreclose. I have $3500 to offer them but they won't accept it. Any help would be appreciated.

[JETX]

Originally Posted by jiminy

Can Washington Mutual refuse to accept monthly payments even though they are not the amount needed to make the loan current?

Absolutely. The minute you breach your agreement, they have no obligation to accept less than the full amount owed. This is covered in your mortgage agreement.

I feel like they are dragging their feet to make it so that I have no other option but to let it foreclose.

And why would you think that they want your property?? Unless it is worth far more than the balance, they probably do not want the expense of foreclosure.

I have $3500 to offer them but they won't accept it. Any help would be appreciated.

I really don't know what help you can get. They have no obligation to accept less than the full amount owed. You don't have it. I suggest you contact them IN WRITING and offer them the $3500 and to double up on your payments or whatever is needed to try to get them to accept.

[jiminy]

The property was appraised a just a few weeks ago for $164,000. They have it figured out and aren't really willing to help anyone that has a legitimate hardship. After the hurricanes came through our work was absolutely at a standstill for three months or more. All of the work done is for the oilfield industry and right now we are busier than ever. Just a little late to help matters though.

[jiminy]

HFC is another mortage company that I spoke with today and the agent I spoke with said that they may be able to do a 10% mortage which will increase the monthly payments to $1100 which will be placed on a sliding interest rate scale which will decrease the payments after about three years. They want to pay off all credit cards and a current home equity loan of $25,000. With all this and costs associated with the new loan, it would bring the mortage up to $121,000. They want $6000 for origination fees. Brings the amount of the mortage up by $40,000. It would cost me $40,000+ interest because I don't have $3,500 to pay Washington Mutual the amount they want. Sad thing is, the $3,500 I do have would make the loan current except for the late payments and attorney fees.

[pojo2]

What is your historyof making your payments on time with WM?

Weren't some safe guards put in place to protect those in the hurricane area? Contact your state Rep or your Senator's office, IF this is indeed due to a hurricane hardship.

Again WM does not want your home regardless of the value that you have placed on it. Likely it would go to auction and they would accept an offer equal to your balance to get it off their books.

When this is finally over stop going out to eat, drop cable service, sell the autos and use public transportation, deep six the cell phone etc. until you have amassed at least 3 but you should shoot for 6 months of savings equal to your monthly payments on all your debt. This is not just for you but those who might come along and read your story and hope never to be in the same place.

Good luck and get on the phone and write that letter Jetx recommended.

DO NOT place your hopes on HFC coming through with that credit score and a pass through underwriting.

They have it figured out and aren't really willing to help anyone that has a legitimate hardship

And I beg to differ with you but WM DOES indeed work things out with people who really works with them and have had a stellar past payment history, got some friends working with them right now and have worked out a very doable plan.

Sit down write that letter tell them you have the 3500 you can send them NOW and ask them to allow you to make a payment and a half each month until you are all caught up. All they can do is say no.

If it does not work then put the home up for sell so you do not lose that equity!