Wamu Locks Late Paying Family Out of Home

June 25, 2009 - PRLog -- We all hope the idea of loan modifications will prove to be a useful one, but the following true story may leave us a bit skeptical: "In response to your request to modify your loan, we are sending a locksmith to re-key your locks and lock your your family out on the street." Which is an oversimplified synopsis of the nightmare this couple faced today. We hope WAMU and other financial institutions will show empathy to troubled homeowners and certainly not cross onto the wrong side of the law in an effort to cut losses. A couple with two infants and a five year track record of perfect loan payments on their home mortgage confronted with the hard times typical in this current economic crises fell behind barely four months on their mortgage. In the early stages of applying for a loan modification someone, with a work order initiated by WAMU, walks into their yard and proceeds to re-key all their locks and potentially leaving a professional family with two infants to sleep on the street. With their business showing signs that it should regain momentum and they would regain a workable income, they confidently contact WAMU and ask about the process of applying for a loan modification. The wife is the actual borrower on the loan, but having English as a second language, she struggles a bit with the technical terms over the phone but gets through the interview process. The WAMU loss mitigation representative takes down some information and income data begins the process. The home was purchased in 2004 and the couple never even had a single late payment since till the current economic downturn. The representative tells them that it will take at least a month or more before the couple will hear back. In the days that followed the phone rang several times a day, with collection agents, most polite but some quite nasty, asking for the wife and relentlessly demanding payment. She tried, with her language barrier to explain patiently that she was in the process of trying to come to a win/win resolution. A letter, mailed by WAMU on April 10, 2009 arrives stating that "...more information is required to process your request". The couple understands since they were still preparing their detailed loan modification package, forms, tax returns, bank statement to mail to WAMU.

The collection calls continue several times each day. Most collection agents were polite, but others got her quite upset. Often she had her husband drop his work to help translate and often the couple was so upset by the less than empathetic treatment that it was hard to get down to the real issue: Earning a living and caring for their family so they CAN pay their bills. The couple filled out the loan modification form and submited loan modification forms and documents and mailed the package via certified return receipt mail on April 23, 2009. The forms were received at the WAMU MHA Program Fulfillment Department at their Jacksonville, FL office, and signed for on April 28, 2009.

Feeling confident that all parties would prefer a win/win result, the couple watched the mail anxiously but patiently since they were told that the process may take a month or even two. Nothing arrived from WAMU about the status of the modification. Then mid-morning on June 25, 2009 the post man knocked on their door with eight letter -- three certified requiring a signature. The letters announced a sale date, time and auction location for their home to be conducted at the County Courthous on November 2, 2009. Expecting news about the modification and shocked by this surprise occurrence, the husband calls the bank. The bank claims that the loan modification was rejected because it was incomplete and the bank stated that they sent a letter notifying us on April 10, 2009 telling us that more documents were required and since they never received them, proceeded with the foreclosure process. The couple explained that that made no sense since the rejection letter they referred to preceded the bank's receipt of the loan modification package by more than two weeks. If the package was signed for as received by WAMU on April 28, 2009, how can they send a letter saying the package was incomplete on April 10, 2009. This angered the WAMU representative for some reason. But after all was patiently explained, the representative said that it would email the modification department to request an explanation. The rep said "Call back tomorrow and see if they can find you package." Feeling better about at least a clue as to what may have happened the husband returned to his work in the home's downstairs office and the wife returned to care for the kids on the second floor.

It was at that point that the nightmare began. The wife sees someone in the backyard with a camera. The husband goes out to see what is going on. The man in the yard with a clipboard tells the husband that he is changing the locks on the doors. "The bank sent me, I am changing all the locks." The husband responds: "Who told you to do that, the man shows him the clipboard and says, "Look for yourself, WAMU ordered it." The husband, horrified asks him to get off the property and the husband takes a copy of his work order. The man is not happy to be asked to leave. Then the husband calls the police and files a report. The husband returns the work order to the man with the clipboard and is forced to make calls to the bank from the street to try to stop this man from locking his family out onto the street.

In this challenging economic environment when billions of dollars are put into the pockets of executives manage to lose money year after year, and 50-year old-company disappear like rainbows, do we want to allow our system to lock hard working good families out of their homes needlessly, disrespectfully and dis-compassionately? The husband who request anonymity adds: "Even if WAMU decides to reject our loan modification application, the proposed foreclosure was not scheduled to finalize until November 2, 2009, isn't it illegal to come by and force our family and kids out on the street like this? It's horrifying! What country are we living in?"

So who's listening if you are  facing a nightmare such as this one. It seems as if not too many real people are there to help. But we can always count on Santa Claus. Santa.net has set up a special email address to receive and publish any similar stories you have to share. Santa wants all kids inside their home for Christmas 2009! And he's willing to do what he can to help. Santa is for "Opened" (As in door to your home:) ...Not Foreclosed!  Will WAMU Get a Bag of Coal this Christmas! Share your modification experiences here: http://santa.net/santa-claus-christmas-blog/2009/06/25/fo...

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