All Forum Posts by: Donna J

I am not, nor do I plan to blame my mortgage problem on anyone but myself. Trust me, I take all this very seriously. I am very disappointed in myself for being in this spot and for buying the property in the first place.

*Did I tell the mortgage broker that it was a rental? Yes.
*Did he schedule the appraisal around a renter? Yes.
*Was I aware the loan was being written as a second home? No.

*Did he get a very high appraisal? Yes.
*Was I happy about that? Yes.
*Was it too high at the time? Yes.
*Did I tell him before he had the appraisal done that I was concerned the prices had dropped enough that we would not be able to get the money we needed? Yes.


I DO NOT blame the mortgage broker! We asked him to refi so we could get a fixed interest rate and that is what he did. He gave us what we wanted. I do not want to backlash now and blame him or cause him problems.

Of course, you are correct when you say that I would not give WAMU more than the payoff if I had made a profit.

My reason for asking the question in the first place, is because I am truly shocked that a thing like Short Sales, where the mortgage company is the one that takes the loss, exists. I thought maybe there are other options that would be just as shocking, that I don't know about.

Short Sales and foreclosures have contributed to our declining values, along with overbuilding in the area. I don't feel good about adding to that problem by selling short. The hurricane scares, gas prices and the economy has had a huge impact on the number of rentals and the rental rates. I can't carry it forever. The amount I have to pay above income is drastically increasing every year.

A person at WAMU told me that the payments being current would not affect their decision of whether to accept a Short Sale offer. I guess if I pay as long as I can, then they see there is no money left in my accounts they may accept it or I will stop making payments because it has run me dry. Then again, she could just be saying that to keep the money coming in. If I have to stop making the payments that will be something I have never done.

Thanks

We have an investment property that we bought in 2004. We had an adjustable rate mortgage, so we refinanced in 2006 to a fixed rate, because we were to afraid of what the rate would be if we waited longer. We have a first and second mortgage. Both are thru Washington Mutual. We are current on all payments and have a 800 credit score.

The FMV of the property is about half what it was in 2004. Our first WAMU mortgage is for $315K, the second with WAMU is for 23K. The last condos in the same building like ours, went for 190K-226K with the 190K being the most recent sale. I believe they were short sales and foreclosures. The lowest priced one is listed for $245K and it hasn't sold for months.

My question is: Is there any chance WAMU would lower my principal to FMV and let me keep the property? I have spoken with them about a short sale and they have told me to list the property at FMV. If my principal amount could be the same as a new buyer's will be, on short sale, I could afford to keep it.

If this is impossible, we do plan to sell short. There are so many SS and foreclosures, it will take years before the value comes back, if ever. There is overbuilding in the area, too. I do rent it an do well enough that if my principal was lowered, I would be able to come out on it.

Thank you!