Posts Tagged ‘Government’

Getting Out of Homeowner Hot Water With Washington Mutual Loan Modification

April 21st, 2022

After the mortgage meltdown really started getting out of hand and the whole economy went down the tubes, a lot of homeowners got scared. Household incomes are going down as layoffs and pay cuts, continue, but their monthly mortgage payments stay the same. Once your monthly payment hits a certain percentage of your monthly income you just can’t sustain it anymore. If this is the boat you are in, relax. You need to learn more about Washington Mutual loan modification.

Washington Mutual is a subsection of JP Morgan Chase, one of the biggest financial institutions in America. Washington Mutual locks in mainly on the middle-market user credit and sub-prime mortgages. It is now fine-tuning several loss improvement programs to help borrowers who default on payments because of financial hardship, allowing them to keep their homes as they work out their mortgage terms.

One of the best loss improvement programs offered by Washington Mutual is loan modification. In loan modification, the lender and borrower work out a new and improved set of loan terms that is more profitable to them both than foreclosure. If you are far behind on your payments, you are actually a pretty good candidate for mortgage modification as opposed to someone who has never been late before.

The first thing you’ll need to apply for a Washington Mutual loan modification is a hardship letter. This letter explains how and why the mortgage payments are late or behind. The key is that it has to be due to some extraneous financial catastrophe, such as a wage decrease or unexpected medical bills. Borrowers have to have at least one source of income remaining so that they have funds to pay on a modified loan.

Remember that the bank has hundreds of modification request to deal with at present, so it may require some patience while you’re waiting for your request to be approved. Seeking the help of a loan modification attorney may expedite the process, however, because he or she can communicate directly with the lender and use legal force if necessary. A lawyer will not only speed things up but will also be able to negotiate to get you a more favorable modification, in case you are not happy with what the bank originally offers you.