What? You are not late? NO loan modification for you. To the end of the line. Next!
That is the usual lip service borrowers receive when they reach out to their servicers when they are not yet late on their mortgage payment. Many reach out because they know they will soon be in very deep trouble and that is what they want to avoid.
But, struggling borrowers continue to get the cold shoulder when the call their servicers for assistance and many are told they have to be late in order to be helped. Yes, this happening daily and the “servicer shuffle” is the name of the game.
It looks like these Bostonians took that advice one step further.
A Boston-area couple who are in foreclosure, despite their herculean attempts to prevent it, have filed a lawsuit against Washington Mutual, one of the nation’s largest mortgage servicing firms.
In the suit, filed in Suffolk Superior Court, Lori and Mark Pestana of Westford allege the loan servicer was unresponsive to their repeated phone calls and to their applications to negotiate an arrangement that would have allowed them keep their house out of foreclosure.
The suit is seeking class-action status on behalf of thousands of Washington Mutual borrowers in Massachusetts.
Their allegations echo those of other borrowers who dealt with customer service departments at major loan servicing firms. Loan servicing firms accept payments and handle mortgage duties on behalf of lenders or the Wall Street investors who hold the loans.
The firms, inundated with loan delinquencies and foreclosures, often don’t respond to phone calls or letters and fail to accept late payments, renegotiate loans, or approve house sales that would avert foreclosures, some borrowers and agents have said.
This part of the story is a something I think many of my readers can relate to!
In January, Lori Pestana called WaMu again but was “caught up in an endless telephone loop,” the suit said; she left a message but no one called her back.
WaMu and Harmon Law violated state law requiring them to bargain in good faith, Klein alleged.
7 Responses
I can relate with this couple. I contacted WaMu in a proactive effort to get assistance during a hardship following medical emergency (surgery) and family tragedy that resulted in financial strain. I was in good standing with them and had very good credit when I contacted them. I let them know my situation and asked if there were any programs for borrowers like me who just had two major unexpected events set me back, yet has been a very good standing customer with long credit history and no lates. I was told that there was nothing they could do for me unless I was 60 - 90 days late to qualify for their loan modification program. I told them that would totally defeat my purpose for calling them and it would ruin my credit that I have worked hard over the past 20 years to establish and maintain. Needless to say, the financial burden was too much for me and I received late reporting to the credit bureaus and now my credit IS RUINED. I wrote letters, made calls, sent faxes but all to no avail. This action can potentially negatively impact any other options I have to gain financing due to the horrible process they take good, hard working, proactive customers through. I am seeking a remedy as well. I will continue to follow their progress.
Posted on September 3rd, 2008 at 7:46 am
WAMU failed and they still haven’t dealt with my application. My interest rate jumped and so did my mortgage by ~$500+. I’m not in a complete crisis, but definitely headed that way. What now? They keep telling me to call back and about how busy they are. They are saying that they sent my file to the wrong group (for defaulters) and now they say it’s pending a negotiator, but the reps I speak to don’t even know what the hold up is. Even after I get assigned a negotiator they say that it will take 6-8weeks for them to process and get an appraiser out to my place and another 4-6 weeks for the appraisal to complete.
I started this whole process and tried to be proactive over 6months ago and WAMU said I was acting prematurely and it would only take 30 days to process my request so not to worry. I am so frustrated and it seems like WAMU (or the now JP Morgan) is buying time because I am one of the Americans that hasn’t defaulted…yet. Again I ask you, what now? This is such a frustrating experience. I can’t imagine what a family in this same predicament must be going through. I don’t have children of my own, however, I do support my aging mother financially. How am I supposed to take care of her medical bills and deal with a ridiculously fluctuating mortgage. But of course, my mother shouldn’t count because she’s covered under our country’s great Medi-Care plan! You’ve got to be kidding me!
I finally caved yesterday and decided to work with a company called Loss Mitigation Services (LMS) that had been soliciting me for some time. They are saying that depending on my application they may be able to adjust both my first and second mortgage (9.45%). I’m so skeptical about all these companies who “offer” help. It seems like everyone is out to make a dollar off this crisis. The government isn’t even offering to help so why should they unless there’s some other fine print they’ll include that I’m not aware of. At this point, however, I’m willing to take the risk. Everyone is being so reactive they forget about the Americans, who like me, are actually making their mortgage payments on time. I’m so close to just saying, “hey, to hell with my credit!” and walking away. The government just borrowed 700BILLION from us to help out the Titans on Wall street, who are partially to blame, but won’t do anything for the homeowners to help actually stabilize home prices and get everyone in a fixed rate mortgage! That’s what started this mess and that’s what will end it. At the same time my Tax Assessor really truly believes that my house was worth $580,000 dollars from ‘07-‘08 (I purchased for $550) and really expects me to pay that taxed amount when the world knows that prices of homes have fallen. This is a crazy mess!
Now I have two open files; one with Hope Now and the other with JP Morgan. I am at a standstill and being given the run around. I am frustrated with everything. I am upset at this false American dream that’s been shoved down my throat. I am pissed off with this fake administration that is doing nothing to nip this whole problem in the bud. I am upset with the City of Oakland for being greedy and unrealistic with their assessments. And worst of all, I feel helpless.
What now?
Posted on October 9th, 2008 at 8:30 am
I just got an ad from wamu for a new credit card. what the hell does that signify?
Posted on October 9th, 2008 at 6:00 pm
SOS!! same old story - I got the same response from WAMU - i called twice indicating i anticipate a problem & wanted to be proactive to avoid it, BUT of course if you’re not late yet - they COULDNT CARE LESS ABOUT HELPING YOU!! I guess I was foolish enough to think it’s better to avoid a problem instead of solve one - wrong again - this is another indictment on why we hate banks isn’t it? Unless you’re in deep doo doo they don’t care about even returning your calls - but be late, oh, now you care eh? - who’s lovin you now eh jerry?
Negotiating in good faith my @*! - why don’t we all just stop paying & file a class action suit & then maybe they’ll care about helping us - remember us, the one’s who pay the bills & keep you in business?! Oh yeah, I forgot, the Gov’t bailout solves all our problems — BS!!! Looks like a tough year ahead - lots of company though - Good Luck - we’ll need it!!
Posted on October 21st, 2008 at 4:25 pm
I worked with the Maximondo Modification Consultant in Chicago,Illinois.
I know how hard to deal with the lenders. Sometimes they give wrong fax no. Some are not interested to help bororwers because they worked with the outside foreclosed lawyers. One time, I had a client and their modification is approved but the the employee of that lender called our client and say drop our company and deal directly with him and it seems He is asking money but incidentally my client was loyal and they told this incident to us.THe client told to that employee how come when they applied 2 months they denied and now it is approved thru our company’s effort, they told to our client to drop us. We protested and reported that employee for unethical behavior. Hope that government and attorney generals of all cities shoudl file a suite. The attorney general of Illinois won the case against contrywide. The wor lenders to deal for modificaitona are : chase,wamu,wells fargo,American Servicing, HSBC (wants 6 months only to modify),Saxon,Homeq,Homecoing,Central Mortgage. They should implement that Loan Modificaiton must decided withn 30 days.
Posted on October 26th, 2008 at 9:43 pm
I had the same problem with wamu. I called in January, my wife does day care and parents were finding alternatives, then she was diagnosed with cancer. We are both self employed. I thought I had good insurance. We spent $40,000.00 on medical bills. I asked for any help they would offer. They said they would not help until we were late. I said so you won’t think of helping till its to late. Thanks Wamu I did not fell the waho!!!
Posted on October 26th, 2008 at 9:50 pm
WAMU could not provide me with a loan modification as well. The WAMU people could only say “I’m sorry, I don’t have anything that could help you at this time.” I have to be in “dire need” of help to get help. I am in dire need of help right now so that I don’t get in to dire need later. It is a terrible feeling, being turned away from help. I’m placing my situation in God’s hands now. I wil not give up or give in, I will continue to work and look for a way out. I hope the couple sueing WAMU will get the justice they deserve and that the rest of us will also get the “dire need” help that we so deserve. God Bless everyone.
Posted on October 28th, 2008 at 11:23 pm
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