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Harold of Irvine CA (06/28/08)
I had a home equity line of $42,000. Today, 06/27/08, I checked my account and it was reduced by about 46% or to $22,800 of which $21,700 is the principal balance. This does not leave me much. I did receive the letter that Washington Mutual was supposed to have sent.
i may have to use my credit cards and I might be in a bind because their limits are shrinking.
Crystal of Richmond VA (06/28/08)
We have tried twice to pay off and close our home equity loan and line of credit. The first time WAMU posted the payment late and charged me additional finance charges they refused to write off. They also referred my account to collections for a measly $700 that remained after getting a $37k check two weeks beforehand. We requested another payoff amount, and sent them the payment via UPS overnight mail. They received and signed for the check, but never posted it to my account.
They are researching it now and ask me to call in daily to see if it was resolved. Im told if they dont find where they have the check I will be responsible for addtional inerest and late payment charges!. They refuse my requests to speak with a supervisor, and only disclose their first names. They do not note the account when I call in, so I have to start from scratch with each rep I reach.
Im worried this has affected my credit. I want them to post the payment and close my account once and for all!
Anthony of Sparta NJ (05/28/08)
I was approved for a home equity line of credit at $110,000. In may 2008 i received a letter stating my credit line was decreased to $33,000 due to decining home values. At the time i had a $16,000 balance. It was spring and i have numerous home improvement projects scheduled for spring/summer 2008. Refinishing a basement, landscaping, driveway extension, and paver walkways.
I called the customer service number to find out what happened. The representative stated my home equity line was decreased due to declining home values. I asked what the new value was and they stated $537,000. I said that was absurd i have proof of neighbors selling comparable homes for $580-600k. They said it was a nationwide % average reduction and locally i may have a higher value. They informed me i could appeal the decrease by having their appraisal company LSI come out and do an actual appraisal and if it appraised higher than their assesed value they would refund the appraisal fee and adjust the equity line.
I went through the process: called LSI, scheduled and appointment, paid for the $150 appraisal (walkthrough with pictures), and waited. I was told that Washington mutual should be contacteing me within a coupole days of the appraisal report being completed. The report was e-mailed to me and another week went by and nobody from Washingtom Mutual contacted me.
I called customer service to inquire about status of the appeal. They said i needed to send my report to the Decrease Department fax# and it would take 15-30 business days to get a response. I said what is there to reply on the appraisal came in at $570k and you have my home assessed at $537k. They said there is a possibility that the credit line may not be increased. I said nobody explained that to me during my last call. She asked me to hold to do some quick calculations.
She came back on and said they would not increase my credit line unless my appraisal was $595k or higher, and even if i send my appraisal in it will most likely be declined. I said that is rediculous nobody explained that to me during the first inquiry 3 weeks ago. Had i know that i would not have wasted my time jumping through hoops trying to show you my house is not diminished in value at my expense. The original representative said as long as the home appraises higher than their electronic assessment they will refund the appraisal fee and increase my credit line.
I asked to speak to a supervisor to find out why my home had to appraise from $537k to $595k for them to do anything about it. She said that the LTV value also went down to 75% and that is why it has to reappraise for such a high amount. I said under those standards and the original $537k appraisal i should only be able to borrow $13k.
This makes no sense. I followed their instructions and they changed the rules along the way. I wasted my time and money of a futule effort. When i pointed this out the the supervisor and demanded my appraisal fee be refunded since the original instruction and goals were met; to have a higher yielding appraisal than they originally estimated. She denied the refund. Whe i said this is poor customer service if they do this then why give the impression that the credit line decrease can be appealed. Why not just decrease the credit lines and not offer an appeal process. The supervisor responded well then we would have customers that are upset. I responded, well what do you think you have now, after i wasted my time AND money to reach the same end result!
I wasted 3 weeks time in trying to get my home reappraised and then $150 in appraisal fee with no increase in credit line. I then wasted 6 weeks trying to refinance with another lender and delaying my home improvment projects over 2 months due to lack of funding.
Wilma of Fenton MI (05/22/08)
I have a mortgage equity increaser progam with you. You deduct money from my checking account every 2 weeks then pay my mortgage holder, Priemer Mortgage. The problem is a payment is scheduled to be paid my June 1st. My payment amount has changed. Priemer mortgage says they will return my payment if it is short again. I cannot find my account. When I call you I cannot talk to a real person because I do not have my account number.
I will be in default of my mortgage even though you have my money. Please help
Lea of Van Nuys CA (05/19/08)
Last year I got Equity Line of Credit from WaMu in amount of $230 000. I used around $17000 and planned to use this summer more to open a small business. But last week I received a letter from them advising me that my Line of Credit was reduced from $230 000 to $23 000. It is unbelievable; they have reduced it for 90%.
I believe that this is illegal. I understand that home values fell 10-15% in a year, but there is no excuse to reduce Line of Credit for 90%. Someone needs to protect consumers from this kind of practice.
Darra of Holiday FL (05/09/08)
Washington Mutual re-assessed property values and in turn reduced my avaialable credit on my home equity line.....with out any warning that they were going to do so. I simply received a letter on May 2, 2008-reducing my HELOC in half! I have excellent credit, my mortgage and equity payments have ALWAYS been on time. Now I have no availability on this equity line as they reduced the line to just a tad over what I owe on it.
Wamu claims I can have an apprasial done on my home by a company named L.S.I.. I CAN NOT bring in an independent appraiser. They claim they will refund me the appraisal amount if my home comes in at $xx. I asked Wamu to forwrard me thier recent appraisal findings and they said they were unable to do so. Their figure shows my property value is now worth $60,000 LESS than it was 18 months ago.
Also, I am paying taxes and insurance on the original appraised amount (higher amount). So really my mortgage payment should be decreased (as my taxes and insurances are escrowed) to fit the NEW appraisal amount. The rep for Wamu told me that my insurance companies would have to call them to discuss that. I am already in a dispute with them (18 months now) over my oringinal mortgage loan that they botched and still have not corrected the situation.
Between my battle over the botched mortage loan and the recent HELOC nightmare--this is going to kill me financially. I honestly do not know what I am going to do. My equity line is used as buffer and provides me with a sense of security in case of emergency etc..I need to have access to that money. I am a hard working, educated single parent. This company has ruined me. I can't sell my home and I can't keep my home. I will fight them to the end though.
Paris of Los Banos CA (04/13/08)
Washington Mutual re-assessed property values on their home equity line of credit and reduced the available credit without notice. We had 80,000.00 left on our line of credit always paid on time, my last statement showed this available credit, but on Friday, April 11th, the available credit was only 4900.00 (approx). when my husband called he was told they will be sending out a letter explaining this soon.
I have now heard 5 other stories that this has happened, one person was remodeling a home and they yanked the rest of the funds needed to finish, another was using this money to live on, my self, this money was taken out on a home my grandfather gave to me he is 97 years old and my mother 73 and uncle 72 live in the other house on the property, the balance 80,000.00 was being used to pay for the mortgage on these 2 homes and I was going to need a little to refi my own home, it keeps adjusting too high. It's gone without notice.
The people who knew took their money out before Wednesday 4/9 I would have if I knew. Now I will lose the home for my mom, uncle and G-pa and possibly my home. This is like your mortgage lender without notice calls your loan due in full, pay now or move. I am worried that this will lead to banks closing with our funds, etc
The lost of 3 homes, 3 elderly folks without a home and a family of 4. with a good credit history, now probably foreclosure,bankruptcy
Chris of Bradenton FL (03/28/08)
Though they are written providing notice, WAMU has now begun reducing lines in FL. I received notice this week basing the decision on a significant decline in the value of my property. However, how significant is defined cannot be determined, since WAMU, through their loan care center in TX, stated that they will not provide the updated value they are relying on to make this decision. Do I not smell a regulatory compliance issue here? The language included in my orig. loan documents define the basis of a significant decline as the value they relied on at the time of application - which was never provided to me as the borrower. Again, misleading.
In addition, should you want to dispute this action, you as the customer, are required to pay for the cost of a full appraisal, which would cost $200-$300. Once again, a requirement that was never included or stated in the original loan documents. Is WAMU possibly making these rules up as they go? And none of this is helping those WAMU borrowers who are and have faithfully met their obligations to WAMU without issue. In fact, you are likely being double penalized because as they reduce your line, your utilization rate effectively increases which will likely have an unfavorable impact on your overall credit score. Nice. Beware - folks, things with WAMU are not as they may seem. Make their primary regulator, the Office of Thrift Supervision, aware of it. Send your issue(s) regarding WAMU to The Office of Thrift Supervision Consumer Affairs Department.
Reduced Credit Line w/o warning, and not supported by any documentation to show action warranted within the terms of the original contract, and negative impact to a consumer's credit score w/o any negative action whatsoever by the consumer.
Ivalee of Bohemia NY (01/29/08)
My 85 year old father wanted some information on a loan that he would be eligible for so that he could make repairs on his home. Washington Mutual talked him into taking out an $150,000 equity line of credit on his home. He did not request this high of an amount. My father had cataracts which prevented him from reading the documents he signed at the bank. In October of 2007, my father passed away and in his will left his estate to his eldest son (who is handicapped), his daughter and 3 grandchildren. Upon learning of this loan and contacting Washington Mutual, it was learned that we had to sell his home and payoff this loan. My father had no income to pay back this loan to begin with and if they had done a credit check or the like, Washington Mutual would have known that my father wasn't eligible for such a high loan amount.
Due to this situation the family is forced to sell the home and it is extremely difficult to relocate 3 grandchildren ages 9,17, and 20 also the handicapped adult can not survive on his own when there is no money left after the sale of said home. His ability to hold employment is limited due to the extent of his disability. I also am currently out of work on disability and cannot support my brother. I could at least maintain the existing home if that loan didn't exist.
Linda of Helena MT (02/23/06)
I took out a home equiline loan from Washington Mutual. I was told that in addition to using checks, I could use a VISA card that worked like a debit card. No mention was made of any fees for using the card at this time, or at any time I worked with a sales person. However, when I used the card at my primary back to get a cashiers check the boat vender requested for a purchase of a boat, I was charge a 2% fee.
Now that doesn't sound like much, but it was $160 on $8,000, plus interest the expected interest. I called customer service to ask about this fee, when no fee was mentioned to me when I got the loan, and the card was referred to being like a debit card. Debit cards don't have fees, they are like writting checks. The first customer service person, said that was a VISA fee and she could not help me. I asked for a superviser and talked to Stacy. She again said she couldn't do anything about this fee. I said the fee was on the Washington Mutual Bill, so of course they could do something about it. She said no they couldn't do anything and the fee was in the paperwork.
I said I am sure it was, but I didn't read all the millions of words that was involved in the 100 plus pages of the paperwork. This type of fee should be mentioned by the sales person, otherwise it is just in the small print and deceptive to the consumer. Or the sales person should never refer to the card as debit, only as a credit card charged to the loan. Credit cards generally charge a fee, either to the merchant, or to the consumer, depending upon how it is used.
Beverly of Anaheim CA (02/10/06)
I have a home equity line of credit with Washington Mutual (WAMU) since March 2001. It's an interest only required payment. Payment is due on the 1st of each month. There is a grace period of 15 days. I generally pay more to reduce the balance. In November 2005, I noticed that the entire payment (interest plus what I thought would go to principal) went towards interest only. I though this to be a mistake. December's payment was applied correctly. In January and February the payment was again applied to interest.
I have called WAMU and talke to several people. Who have told me the loan documents I signed stated that if my payment reaches them after their drop date (the date the new statements are generated which is apparently around the 7th of the month) that when the receive my payment it is all applied to interest and nother towards principal. I have read my loan documents and do not seen anything that says that. I have talked to the local WAMU branch and they were not aware of this either. It is hard to believe that this is even legal.
But if it is a legal practice, shouldn't I have been made aware of it before I agreed to the loan. Shouldn't they at least make things "right" for past payments and apply their rules for future payments since I am now aware? Please help me I am so fustrated. I asked to talk to Kerry Kellinger, Head of the company, and was told they didn't have his number and didn't know if he had a secretary.
Tina of Perkinsville VT (11/16/05)
I have a Home Equity loan. Starting in September 2005 I began calling Washington Mutual to try to obtain information on what my options were if I was not able to continue making payments. I wanted to see if I could get my payments reduced. Since February 2005 I had been paying all the bills myself because of divorce. I knew I was not going to be able to continue this and wanted to find out what my options were. The house had been on the market since June 1st without any movement.
If I was not cut off by their telephone system, I was repeatedly told that until I was at least 45 days late the collections department would not talk with me. So I didn't make my October payment. I waited until the end of October and tried to get through again and was unsuccessful. I now have an offer on the house and can not move forward until I can get an answer from Washington Mutual regarding a short sale. I am extremely concerned and do not want to lose this sale. I believe I am going to be between $7500 to $8000 short.
The only thing I have been told is that I have to pay this or I will go into collections and they will not release the lein on the property until they are paid. This means I can not sell the house. This not only leaves me in dire straights it also leaves the first mortgage company, which happens to also be Washington Mutual, at risk of having to proceed with foreclosure. All I need is to be able to discuss this with the correct area so I can try to get all this resolved with as little impact to my credit rating as possible.
I have tried to be up front and honest and get ahead of all this but I have just been beating my head against a brick wall. It is really a sad statement to say that if I neglected my obligations then I would be able to get answers.
Andrea of Friday Harbor WA (11/06/05)
We had a home loan and an equity loan with Wamu.We refinanced and they were paid off everything including the $500 cancellation fee. Almost a year later we go for a home loan to purchase a property and we find out that they never closed out our account and are saying we owe tham a $500 pre-payment fee and are charging us interest every month we don't pay it and it is reflecting negatively on our credit report.
We have proof we paid them everything and they are doing nothing about it. We have reported it to the Attorney Generals office but they say there is only so much they can do if Wamu doesn't respond. It has been really bad for us and we don't have the money it would take to hire an Attorney.
Pat of Duncanville TX writes (3/11/03):
We were solicited for a no-fees equity loan. When the closing was set, an appt was made by Diana Voth, who was the solicitor/loan officer. She left for lunch as we arrived and had to be chased down by branch employees. Nothing was ready in the system, so we started from scratch.
She told me the disbursement checks would be mailed to the 4 payoffs and the remaining funds would be mailed to me even though I had an account. I thought monies would be wired, but she said she did not have wire instructions, and my banks would charge for wires coming in to pay off loans. I have never paid a fee for this before, and asked her does WAMU charge for wires coming in to pay off loans. She said they don't but many do, so I called all my payoff banks and asked about charges and I got wire instructions from them for WAMU,and hand carried them to Voth.
The day monies were to be wired nothing happened. Days went by with me calling WAMU and my other banks. Voth kept telling me I did not understand the process, so I called her supervisor. They finally realized that the wires had not been done, and told me any extra interest I paid to the other banks, they would reimburse. Well, I am not sure what they thought, but I have still not received all my money and it added to 264.00. This is a small amount compared to others, but it was how this has been handled since the closing 11-21-2002.
No matter how I try to explain this to Voth and the regional office, they do not understand. They continue to say that I would have to pay the other payments anyway. One wire was 20 days late, they started doing some strange calculations and kept asking for info from the other banks, how much was due on the date of closing...which made no since, I had already given them letters from each bank stating what their daily rate was and when the wire posted. So this should have been adequate. So Voth told me maybe the other banks just did not post them properly or timely. Saying this happens all the time and they always give several days to credit wires to accounts! Well, we all know when WAMU released the wires and they were 8 and 10 days late, and it was not the other banks error.
One did not have an account # or a complete name so it was lost for 20 days. They intend not to do anything about this and I don't think it is because they don't want to, it is because they don't know how. I have refinanced several times in the past and have never had this happen. The people are incompetent. The regional officer knows less than the branch tellers. He has never tried to help me straighten this out, and there again, I believe he does not know how. I have requested help from Quality Assurance, they sent messages to Voth and Nancy St Jacobs. I was told they never returned calls. One other branch loan officer has tried to help me and said she undertood what had happened, she called the mortgage loan supervisor and found out that Voth had never done all the paper work. We never got the wire information sheet and never signed the page requesting right to cancel. They took a month to mail us the papers, but we still did not get all the right papers.
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July 7 2008
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