I live in CA and have an option ARM. I purchased for $765,000 in 2006. My house is worth about $550,000 today and my loan balance is around $600,000. I wanted to get a fixed rate loan because I am concerned rates will skyrocket next year.
Since I don't have equity I can't refi so I requested a mod from WAMU/Chase. I filled out all the paperwork and sent in all the requested info. In my letter I explained that I was concerned I would not be able to afford the payment if rates went up dramtically and I wanted to have this loan converted or modified to a fixed rate loan. When they contacted me it was to tell me they didn't receive things that I had faxed to them. Then they sent me a letter telling me they were cancelling my application as I had not provided all the documentation, this was a week after I had been told they had everything. After about 5 months I got a call from a processor tellng me that they needed all my information again as the stuff I gave them was too old. I sent it in again and three or four weeks later I received a letter telling me that my request was denied because my incme was too high and that I had some assets that made me inelligible. I called and asked to speak to a supervisor. The supervisor told me that my income was $40,000 per year and that I made to much to qualify. I explained that I made much more than that but if I did only make $40,000 how would that be too much for a $600,000 mortgage. They could not answer that question. They laso could not tell me what assets I had theat made the program unavailable. I contacted my congressman's office and they filed a complaint on my behalf with the Comptroller of the currency. I am waiting to see what happens.
Sounds familiar. I can't keep paying into a hole anymore cause I'm going broke. I lost 40% of my income this year and was unemployed for 5 months. I have been trying to work with them (now Chase) since may. I have sent my life story to them five times and they either say they didn't get it or something is missing or too old. Its just a tactic I think. I am going to stop paying them and see how they react. I'll walk away if I have to.
I had my congress person file a complaint on my behalf with the Comptroller of the Currency about a month ago. I got a phone call yesterday from a woman at Chase responding to my complaint. She said she wanted to give me her contact info so I would be able to reach her if I had any questions.
I explained my situation and she looked up my file. She told the amount they used as my income. This number was much higher than my current income. I looked up my original loan file and it was the amount I made when I originally got the loan. This is about 40% more than I am making currently. I told her I didn't make that much and that if they looked at my income documents they could see that.
I also asked about what assets made me inelligible. She said I had verified about $21,000 liquid. Evidently that is too much for a $600,000 mortgage. I would like to know what the limit on assets is.
I will repost when I hear back.
main1event Dud?
Joined: 09 Nov 2009
Posts: 1
Location: Rhode Island
You make 40k and you own a 600k home. No wonder we are doomed.
I don't think you read my post correctly. WAMU said that I made $40,000 per year. I make significantly more than that but my question to them was how could $40k per year be too much income for this size mortgage.
I have been a morgage originator for 25 years and I know how to qualify a borrower and calculate income. My point is that WAMU doesn't know how to or is willingly miscalculating it in order to turn down borrowers requesting loan mods.
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