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Washington Mutual Home Equity Loans

Washington Mutual • WaMu Bank • WaMu Mortgage • Refinancings • Home Equity Loans • Construction Loans --- News • WaMu Seized, JPMorgan Chase Buys the Remains • WaMu Buys Providian • Class Action Filed

Miriam of West Haven, CT March 13, 2010

I had a home equity line of credit that was a fixed rate. Without my consent they changed it to a variable rate. I have since filed a Quit Claim on the property to Citimortgage with whom I had a short sale agreement. I have copies of all the letters that I had written to both banks. In addition I had written to the office of the Attorney General of the State of CT. I received assistance form CT Fair Housing after I had written to the Dean Of the University of CT Law School. I have submitted a petition for Chapter 7 bankruptcy to the US Federal Court in New Haven CT. I have also asked for assistance form Yale University Law School. I have written to the local ABC news station asking for assistance. I feel that WAMU may have engaged in predatory lending. They inflated the appraisal of the property. They refused to return the line of credit to a fixed rate. I have a great deal of documentation that I would like to share.

Kim of Alexander, AR June 4, 2009

Several years ago we opened a Home Equity Line of Credit as a "back up" in case we needed it..rates were low so we took advantage. We have NEVER been late on a payment and always pay more to try to pay down as much as we can. Our credit is EXCELLENT 780 plus! Like so many I have read..they too asked for pay stubs or letter stating that we are business owners (which we are) and a signed IRS form to check up on our income.

After provinding them with the requested documents they froze our credit line. no longer able to access it only to continue making payments until paid in full. This BETTER not hurt our credit!

Theyre reasoning was that there was a change in our income! Absolutely not true! what do we do now. I do not feel they should be able to get away with this. if this was an isolated case. I wouldnt think too much of it but as I read on and on and on they are doing this to ALOT of us and we should be able to do something about it.

Vicki of Weatherford, TX April 9, 2009

Vicki of Weatherford TX (04/09/09)
I had a home equity loan with Bank United, who was then purchased by WAMU. The loan was paid in full in September of 2001 and a release of lein has never been filed. Since then Chase has bought WAMU but since the deal is not final they will not help me either. I have requested that WAMU release the lein several times, and no reply or response.

I am trying to get a home equity loan, but with this still on the home as being unreleased, although it shows as paid on credit report it can not go through. This has been a nightmare.

Don of Port Townsend, WA April 8, 2009

Don of Port Townsend WA (04/08/09)
I've been a Washington Mutual customer for over 30 years and have excellent credit. Early in 2006, I opened my third HELOC with WaMu, having paid off the previous two in full, and never missed a payment on any of them, ever. At the time I opened the latest HELOC, I opted for a no doc loan and pay a margin premium for the life of the loan for this feature. Recently, Chase, which acquired Wa Mu after it failed last year, demanded I supply pay stubs and fill out a release for the IRS to supply it with tax returns. I contacted the bank and pointed out the loan documents did not allow them to change the terms of the agreement except by mutual consent and that the only documentation they could require of me were those of the same type provided at the time the loan was made.

Chase refused to honor the terms of the agreement and told me the loan would be placed in default if I did not comply with their demands. It's fairly obvious what the agenda is behind these tactics. Chase expects to be unjustly enriched by being able to market pools of these types of loans under more favorable underwriting standards, and at a higher rate of interest than that charged to customers who opened full doc loans at the time.

Chase has since notified me they have placed the account in default and that I will no longer have access to the line of credit. This potentially hurts my credit score and access to credit from other sources, and I'm paying a premium interest rate for a feature of the loan I'm not receiving.

Maryann of Cave Creek, AZ February 21, 2009

Maryann of Cave Creek AZ (02/21/09)
I have a line of credit with WAMU. I have had it for three years. After the first year they sent me a letter stating I did not have adequate flood insurance. I increased it to their requirement. My line of credit is for 234,000. My insurance is for 112,000. After three years they now are saying I need to increase my policy 76,402.00 This would make my policy at 186,000. Now this coverage is for the dwelling not the interior. The home is 1400 sq. ft. Cost to replace the block which is the only thing covered under this policy is less that 186,000. My home owners covers the interior. I am told by my insurance agent cost to replace the Whole house would be 169,000. Replacing the block should not cost more than 100,000??? This would be double insurance for my home which is NOT NECESSARY. What can I do to stop this robbery being required by WAMU?

Flood insurance is very expensive for just covering the exterior. Resonable coverages for exterior replacement needs to be mandated to the mortgages. They are just going by what is owed and requiring that amount and not by what the actual cost would be to replace the exterior.

Paul of Miami, FL January 30, 2009

Paul of Miami FL (01/30/09)
I aquired a HOME EQUITY LOAN with Washington Mutual about 5 years ago, the loan was At Prime Rate The problem is that when the Prime Rate went up, the Payment went up immediatley day by day, but when the Prime rate goes down, WAMU does not adjust it, sometimes it takes months and only adjust it when you complain. I am amazed that a sharp Lawyer does not look into this practice and form a class action lawsuit. this is a Multi Million dollar FRAUD!

I end up paying More! and theres no way to determine exactly how much more.

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