Looking for a Loan…and a Job

Posted on April 19, 2010 by Cooler By A Mile

I rented the house again, took in paying guests when I could, kicked into high gear on freelance work, scrambled to do more yard sales and flea markets and tried to create new employment opportunities when there were none to be had. There were some promising senior-level job leads and even a few phone interviews but each ended prematurely. “The position has been put on hold.” “They’ve decided to go with an incumbent.” “A board member is going to take on the role.” “They met someone outside the recruiting process and fell in love with them.” I could see that executive recruiters weren’t making much money either. A friend ran a spreadsheet calculating my savings and my income to the penny and I saw very clearly that February 2010 would be the last Chase loan mortgage payment I could make in full – my savings would be depleted. I had to figure out how to make this all work.

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Game Over

Posted on April 19, 2010 by Cooler By A Mile

Phoned Chase/WaMu on July 3, 2009 at 9:30 am and spoke with Chris. After verifying all of my contact information Chris advised me that my loan modification request was reviewed two days ago and I did not qualify due to the amount of equity I have in the house. I do not meet the interior department guidelines. A letter of denial has been sent and I may certainly re-apply if “my situation changes” or maybe, he said, I ought to consider selling as they are open to a short sale. He then terminated the call.

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Chasing WaMu

Posted on April 18, 2010 by Cooler By A Mile

WaMu becomes Chase!

Phoned Chase/WaMu June 5, 2009 at 9:55 am and spoke with Hank who had fond memories of vacationing on the seven-mile island of Avalon, NJ. Hank confirmed my re-submission fax was received on 6/3/09 and that the loan modification clock starts anew. Hank advised there was nothing for me to do but “be patient and pay my mortgage”. The government had changed all the programs in March and the programs change daily; his department had only been established on May 1, 2009. Hank assured me they are working on it and said it was okay to call back and check in every week.

Phoned Chase/WaMu on June 12, 2009 at 9:35 am and endured a recorded collection message informing me this was an attempt to collect a debt. Note: I had never been late nor had I missed a payment. After the message played I was put on hold for ten minutes when Kim B. picked up. Kim’s sole purpose appeared to be to transfer me and introduce me to someone who could answer my questions. I then spoke with Adam who noted I’d called before. Adam confirmed receipt of my 6/3/09 fax and advised that all paperwork was in hand, WaMu had a “complete” package. Adam said I should have an “update” by end of month; it’s taking 20-25 days for an “update”. I pressed him on what an update meant and he said deny, modify, etc.

Phoned Chase/WaMu on June 23, 2009 at 10:30 am and spoke with Brad who advised that as of 6/15/09 the loan was in the Imminent Default department and I should be calling a different number. Per Brad the loan had been assigned to Brad U. – I could see this conversation was going nowhere and asked to speak to someone in Imminent Default. I was transferred to Troy who told me the files had been “sent to Guardian to microfiche” and that should take a week. They are taking pictures of documents and basically my loan is still in the review process. There was nothing he could tell me and nothing I could do. Brad was in Loss Mitigation, now I was talking to Imminent Default and they do not share names. Troy terminated the call by hanging up on me.

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Maybe, Maybe Not

Posted on April 18, 2010 by Cooler By A Mile

Phoned WaMu May 8, 2009 at 12:55 pm and spoke with Amber. Now that they have received the “missing” information, as of 4/15/09 they have 28 business days to assign to a negotiator as the package is now “complete”.  It will go to a different negotiator and within the 28 days I will be contacted.  

WaMu is Becoming Chase!

As it was the one-year anniversary of my salary reduction it seemed time to approach the owners and ask for a salary adjustment. Given that I was still doing 100% of the work at 50% of my salary, I was confident they would see how well the business was doing and make some positive salary adjustment in recognition. In acknowledgment that times were still tough, even though our sales were robust, I offered to take on additional work as part of a salary increase and posed several options. All ideas were rebuffed and no salary increase was granted.

Phoned WaMu/Chase on May 20, 2009 at 8:45 am and spoke with Julie. She indicated my loan was assigned to modification officer Brandon U. on 5/13/09 and it would take 77 days from then. Per Julie, no file was opened until 3/31/09 and anything related to my 2/24/09 submission and all prior communications were null and void. Stanley S-D. may have been an “opener”. I will receive a form letter telling me they are looking at the loan and considering my request for a modification.

May 20, 2009 at 3:35 pm I received a call on my landline, not the cell phone number I had provided to WaMu/Chase as my sole contact telephone number. It was Rich Naylor calling to tell me Brandon U. is a processor. Rich Naylor was in charge of doing the review and my loan was no longer in Loss Mitigation, it was now in the Imminent Default department. The package was considered incomplete as of 5/13/09 and would not be looked at until all updated and additional material was provided.

Rich directed me to the web site and told me to download the forms and submit all of the requested information. This site had no cheerful exclamation points – just a Borrower’s Assistance Form with a lengthy checklist.  Rich also requested:

– Updated/current utility bills showing proof of residency

– 2 pay stubs or 30 days worth of pay documents

– 2008 income tax returns

– Documentation of all assets

– Recent bank statements

– Profit & Loss Statement

– Monthly Budget

All were to be faxed to the Imminent Default department and should be mailed as well. Upon receipt of all documents, the loan would go to review and then be assigned to an underwriter, after which it would take 30-40 days.

Basically, after three months of paper shuffling WaMu, now Chase wanted a complete resubmission of my loan modification request.   

May 23, 2009 was spent assembling, copying and faxing the requested documents, now totaling 53 pages. With the exception of my 2008 tax returns (I’d already submitted 2006 & 2007), most of the documents were updates on the same documents I’d submitted 2/24/09 and 3/13/09.

May 26, 2009 I mailed the same documents to WaMu Imminent Default. No upbeat Home Ownership Preservation moniker at this address.

May 29, 2009 I confirmed the packet had been delivered at 8:51 am via Certified Mail.

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April Fools

Posted on April 17, 2010 by Cooler By A Mile

Phoned WaMu April 3, 2009 at 11:20 am and spoke with Amber. Per Amber, on 3/31/09 a loss mitigation file was set up and the negotiator (a Stanley S-D.) had been assigned and he’d left a note in the account requesting that I provide copies of my last two years of income tax returns and verification of the freelance income I was reporting. She said a letter had been sent to me requesting this information.

Verification was going to be a problem on the freelance earnings. It was just that, freelance, with no guarantees and no real “boss”. No paycheck either – the money was wired to my checking account and WaMu could see that, but they wanted to know why and where it was coming from. After some wrangling I managed to get a letter from my “employer” stating that I did freelance work for them but it wasn’t easy.

Phoned WaMu April 6, 2009 at 9:00 am and spoke with Kimberly and told her I had spoken with Amber on 4/3/09 and I had still not received a letter telling me where to send the requested documents. Kimberly insisted a letter had been sent and gave me a fax number to submit my documents.

Faxed WaMu April 7, 2009 at 10:00 am and submitted the requested documents.

Phoned WaMu April 8, 2009 at 8:14 am and spoke with Kyle. I wanted to follow-up on receipt of the fax but per Kyle, they “are swamped” and I must allow WaMu 7-14 business days to receive a fax; I could try calling back on 4/14/09.

Phoned WaMu April 13, 2009 at 8:49 am and spoke with Kathy. I asked her to verify that a letter had been sent to me and to confirm receipt of the fax. Kathy alleged a letter had been sent via USPS and “the file is still open which means they must have the fax.” She advised it was now taking 79 days from when the negotiator gets it to completion. I asked to speak to the modification officer and was advised she could no longer transfer calls. I then reviewed with Kathy the entire timeline starting with WaMu’s confirmed receipt of the 2/24/09 packet and said I never got a letter acknowledging anything was happening; no one had ever gotten back to me about anything and the only way I knew additional documents were required was by repeated phone calls. I asked if I might get something in writing indicating they were working on my case. She indicated that the file went to the negotiator on 3/31/09 and confirmed my cell phone number as the correct way to reach me. It was not a friendly or productive call.

Phoned WaMu April 17, 2009 at 3:36 pm and spoke with Paula. Per Paula, they forwarded the faxed info to the negotiators on 4/15/09 and it should take 68 days. Per Paula, the negotiator is still Stanley S-D. I should call back every week or two to check on the status.

Phoned WaMu April 23, 2009 at 9:15 am and spoke with Kathy who said there was “nothing new to report at this time.” The negotiator is working on it and the time frame is now 69 days from 3/31/09.

Phoned WaMu April 30, 2009 at 1:40 pm and spoke with Kim who asked if I was just checking in on my loan modification today. Per Kim, the timeline does not start until the file is sent to a negotiator and that it would take 76 days from 3/31/09. I asked if there was anything I could do or if there had been any change since 4/15/09 and Kim said it is frustrating and she understands but there was “nothing I could do at this point.”

April is over and I am the fool.

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Time Marches On

Posted on April 17, 2010 by Cooler By A Mile

Phoned WaMu on March 6, 2009 at 9:00 am and spoke with Juan C. Per Juan, “WaMu is hiring and training people. They are getting about 150 requests a day. As of today’s date it has not yet been assigned.”  Juan estimated it would be reviewed by Friday 3/13/09 and suggested I call back then.

Phoned WaMu on March 13, 2009 at 9:20 am and spoke with Margie. Per Margie, it’s “going to be a 97-day turnaround from when the negotiator gets it” and it “should have been assigned.” Margie confirmed that nothing appeared to be missing and could not understand why it hadn’t been assigned; she then gave me a priority number to fax in my 34-page packet, even though it had been received already. When I asked her what a reasonable time frame was to follow-up, she said they would contact me within 48 hours and reconfirmed my cell phone number.

Faxed WaMu on March 13, 2009 the 34-page packet.

48 hours elapsed with no calls from WaMu.

Phoned WaMu on March 13, 2009 at 8:50 am and spoke with Kathy. The paperwork had been received on March 16, 2009 and forwarded to an “opener”. It goes to an opener first and is then assigned to a negotiator; that can take up to seven days (3/26/09). I pressed Kathy on what happened to my original submission, the one I mailed in, because we were losing time and each day counted; she said she would open up a Work Order for the original submission and indicated that once the Work Order was opened, they would contact me within 48 hours. Kathy said the whole process should take 30 to 60 days and that they were averaging 66 days.

48 hours elapsed with no calls from WaMu.

Phoned WaMu March 20, 2009 at 10:00 am and spoke with Kristen. Per Kristen, “on March 16, 2009, the packet was forwarded to C. H.” (an opener) for research and to be assigned. “Escalation is looking into what happened to the 2/24/09 submission.” I will either get a phone call or a letter in the mail regarding more info needed or that they are working on it. Kristen suggested calling in 3/31/09 to follow-up.

March ended with no calls from WaMu.

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Inside The Box

Posted on April 16, 2010 by Cooler By A Mile

Please explain:

In May 2008 my salary was reduced by 50%. I have supplemented my income with freelance work but am unable to obtain full-time employment at my original salary or supplement enough to reach my original salary and honor my mortgage obligation.

I continue to seek full-time employment at my old salary without success.

I am only able to make payments by using savings; those savings will soon be depleted.

I seek a reduction in interest and a modification to a fixed 30-year mortgage. This will enable me time to obtain higher-paying employment and allow my savings to last longer to meet my mortgage obligation. I have no desire to sell my home.  

I moved on to Number 10. “Would you prefer to keep your home or sell it?” I checked Keep my home.  Number 12. “Do you have any other loans on the home?” I checked No. I completed the remainder of the form, painting the best possible picture about how much my home was worth, how little I owed relative to its value and how frugally I lived. Then I gathered the requisite paperwork (a full 34 pages) and headed out to make copies and send my application by Certified Mail to WaMu Home Preservation. It was February 18, 2009.

On February 24, 2009 I phoned WaMu. The packet had been received. A file would be created, reviewed and checked for missing items. Then, a processor would be assigned. I was advised to call back in 7-10 days.

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WaMu Cares

Posted on April 15, 2010 by Cooler By A Mile

Searching here, searching there, searching almost everywhere – four long months of searching for another job, any job and on the eve of 2009, an actionable New Year’s resolution to redouble my employment search efforts – my current income (50% salary reduction) had put me back to what I earned in 1989. Sherman, time to re-set the wayback machine. An aside – the effects of underemployment are not just financial but psychological. It’s very depressing. That said, in the world at large unemployment was rampant and the fact I still had a job, even at a dramatically reduced salary, was something to be happy about. Put up and shut up. I worked as many freelance hours as I could but it became apparent that using my savings to supplement the mortgage payments was going to be a much longer term remedy than I’d envisioned. I needed a way to stretch my savings as long as possible so I could continue to meet my mortgage obligation while seeking more rewarding work. The solution: apply for a mortgage modification.

Washington Mutual had a web site with a Borrower Assistance Form and the notation “We’re in this with you. We offer options for resolving your home loan issues.” They offered a two page form that was easy to download and complete. The tone was upbeat and helpful, with phrases like “Thank you for taking steps to resolve your home loan issues!” and “We’ll contact you soon!” Even the mail drop was designed to ensure confidence and optimism: WaMu Home Ownership Preservation; yes – this was the solution I’d been seeking. Home preservation help was within my reach.

Numbers 1-8 on the form were the standard address, phone and account number sort of queries, while Number 9 asked: “Why are you having trouble with your home loan payments? Select all that apply:” The answer was simple; only one box applied to me: Reduced Income. The multiple choice section was followed by an empty white box titled: “Please explain:”    

So I did.

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Chase the WaMu Bait & Switch

Posted on April 15, 2010 by Cooler By A Mile

Even as I signed the modification with Washington Mutual I felt niggling questions…why was the payment so high? Over $6600.00 a month is an awful lot of money, but I guess that’s what I needed to pay to clean-up the negative amortization and improve my credit rating.

And we all know your credit rating is almost as precious as your virginity – it must be kept intact.

So pay I did. I paid the February and March payment not only on time, but added in extra money towards the principal. I was making decent money in my new job and aside from this mortgage, my expenses were minimal. I could actually see the loan amount getting smaller. This was a good thing. Of course all good things come to an end, although the end was more abrupt than anything I could have imagined. On March 25, 2008, my new employers informed me they had radically underestimated the operating expenses for the business and they simply could not afford to pay me, the sole employee other than a part-time clerical person, the salary I’d been promised. Effective immediately they needed to implement a 50% salary reduction. I’d been paid for March and had thirty vacation days, so I could get paid another month at full salary but after that, as of May 2008, my salary was cut in half. Not a wage freeze or a 10% or 20% reduction, but a 50% salary reduction.

With only six months in the job I knew if I started a full-on job search people would think I’d done something wrong and that I was a job-hopper or a problem employee. Not good. I had to suck it up, at least until September 2008, when, with a full year on my resume, it wouldn’t look so bad to seek a new job. I had some non-retirement savings, about $60,000, having sold a second home, so what I could do each month was supplement my reduced earnings by dipping into the savings, thus keeping the mortgage current, continuing to reduce the principal and improving my credit rating. And it actually worked, for a while. I took on more freelance work and in order to keep everything going, rented my home again for a summer month and even took in guests while I was in residence.

In September 2008 my official job search began, and I joined the ranks of countless 50+ year-old baby boomers seeking a senior-level, high-paying job. Something else happened in September 2008:

WaMu Assets Sold to JPMorgan in Record Bank Failure  

Sept. 26, 2008 (Bloomberg) — Washington Mutual Inc. was seized by government regulators and its branches and assets sold to JPMorgan Chase & Co. in the biggest U.S. bank failure in history.

WaMu became “unsound” after customers withdrew $16.7 billion since Sept. 16, the Office of Thrift Supervision said yesterday. Branches are open today and depositors have full access to their accounts, Sheila Bair, chairman of the Federal Deposit Insurance Corp., said.

The failure of WaMu, which has $188 billion in Deposits, ratchets up pressure on lawmakers to piece together a rescue package for the nation’s financial system. The government’s inability yesterday to reach agreement on a bailout and the seizure of the biggest savings and loan sparked a sell-off of bank stocks, led by a 27 percent tumble in Wachovia Corp…

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Blood Money

Posted on April 15, 2010 by Cooler By A Mile

Things seemed okay with the Washington Mutual mortgage. I made each monthly payment on time and enjoyed the pick and pay feature because I could pick the low number, but WaMu seemed very big on direct mail solicitations. They sent a lot of stuff. I’d rigorously checked the “do not call’ box in my documents, but there didn’t seem to be a “do not mail” option. I guess they needed to be able to contact you somehow or other. As time passed the direct mail solicitations increased, sometimes with two or three offers a week arriving in the mail. I didn’t read them at first as they all seemed to focus on me paying WaMu some lump sum in order to “fix” my interest rate. The lump sum was large, over $3000.00, and that alone stopped me from reading further, plus I was busy with work and simply exhausted.

The exhaustion turned out to be more than routine fatigue. Over a twelve month time frame my hemoglobin dropped to 4.3 and I received seven blood transfusions. In retrospect I wasn’t thinking straight, but I was thinking about my credit scores and the possibility of identity theft because my scores were not great. I had no credit cards other my American Express card and after refinancing I’d barely used it; when I did, I paid in full – there was no outstanding balance. There were also no car loans, no student loans and no department store credit cards, in fact the only card I did have beside American Express was my debit card. Yet my credit scores were low and getting lower each month. It didn’t make sense. I met with a local banker to understand why my scores were so bad and he explained it to me in no uncertain terms. I was in a pick & pay loan and each month that I did not pay the full amount, my loan amount increased – I was creating and experiencing negative amortization. Even if I immediately stopped picking the small amount and starting paying the full amount, my credit score would improve very little, due to the questionable nature of the pick & pay loan. This was an eye-opener; negative amortization was a new and scary addition to my vocabulary.

That’s when I started to pay attention to the Washington Mutual direct mail solicitations.

I also started paying the full mortgage amount each month (the principal and interest) and even made some headway on chipping away at the negative amortization, but now that I was focused on the mortgage I could see that when the loan adjusted, the interest rate was going to jump and the full amount was going to increase big-time. It was already a reach to pay in full. The solicitations continued, with a diverse array of offers and incentives, but the bottom line was always the same: pay WaMu “X” amount in a lump sum for the opportunity to “fix” your interest rate before it’s too late (and the rate adjusts up).

I obsessed over the impending rate adjustment and thought about how to make more money. I picked up a freelance job in addition to my full-time job, had more yard sales, sofa surfed while renting my home for a month in the high season, baked for a local coffee shop and finally resolved my health issues, although it would take time to become truly fit again. Things were looking up and I started a new job just after Labor Day 2007. This position was with a small, new company and it paid well, at least well enough for me to make the full mortgage payments. I thought about re-financing and saw there was a penalty for anything before the 30 month mark; the interest rate adjustment loomed large yet the penalty to re-finance was prohibitive. I was stuck between a rock and a hard place.

The Washington Mutual solicitation continued, with a curious twist – the lump sum amount to “fix” the interest rate kept dropping, and was now more in the $1200 range. I called for information but deferred on a decision. Washington Mutual redoubled the direct mail efforts and started calling (with my permission) with a new sense of urgency – IF I acted before December 31, 2007, I could get in on a very special deal. I passed, but by January 2008 I could see that rates were only going up. I needed to lock in on something or this mortgage would be out of control.  In February 2008 I folded and paid Washington Mutual $995.00 for the privilege of locking into a 5/1 LIBOR Interest Only ARM at 6.62%. What the hell was I thinking? I have no idea. I remember the notary calling, offering to meet me in a Starbucks so we could sign the papers. I imagine now they would have sent a notary to the moon to get my signature. But it’s my decision, my responsibility and I own it. All done to preserve my credit rating and keep on top of things… if I only knew then what I know today.

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