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Washington Mutual Home Equity Loans

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Kamil of Providence, RI September 26, 2008

I was approved for a home equity line of credit at 40,000. In August 2008 I wrote a check to use the balance after paying it down to zero balance. I was informed after couple of days that the check was returned for Insufficient Fund and later received a letter stating my credit line was decreased to 12,000 due to declining home values. At the time i had several transactions pilled up in my other paying account.

All transactions started bouncing and had an overdraft of around three hundred dollars, I really suffered serious embarrassment. I was in the middle of my home improvement projects working on my roof, basement, driveway, and pave 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 was referred to LSI for reappraisal. I never bothered because I know I will be wasting my precious time. Now they want me to fax copies of the returned checks for reconsideration but the fax number is non-functioning. Now Im stock, I just dont know what to do as I really need the money

Lenore of Palo Alto, CA August 19, 2008

I took out a home equity loan in 10/07. At that time I informed the manager that I was in a flood zone and had already paid my insurance for 2007-11/08. He proceeded to assure me all was okay. My loan went through and several weeks later, I started to get letters about flood insurance. Every time I got one, I sent/or AAA sent a copy of my policy to Wash.Mutual. Finally the letters stopped coming.

About one month ago, they started up again and I had AAA fax another copy to the number I was given. I went into the branch - it was obvious that the manager and his assistant had no knowledge of flood insurance requirements. For 14 years I paid flood insurance according to my mortgage amount and now told WaMu reguires the maximum flood for 250,000. No conversations, no followup from my faxs declaring a paid flood insurance policy. They purchased additional flood ins and removed the money from my bank account.

Since this has happened, I have been researching their claim and the bank does set the flood insurance requirement. In this instance they are requiring maximum insurance for a very small loan. (under 25K) The asst branch manager, and the person in the exec office will not give me the name or contact information for any supervisor. They claim that basically one size fits all customers and there is no discussion.

The asst got so frustrated with my instance on personal service for my needs, she told me that if I didn't like the way WaMu does business, I could pay off the loan and leave the bank. My reply was - gladly, however, unless I keep the loan for 3 years (2010) it will cost me 1000 pre payment penalty. A fact she chooses to ignore.

1000 pre payment penalty to close the loan. 1300 - 1500 per year for the next two years for flood insurance when my payments could be in the mid 200 range.

Rebecca of Cambridge, MA July 21, 2008

Late last summer, I called to have a transfer made from my home equity line of credit to my checking account at WaMu for 500. I talked with a man who was nice and friendly, but the amount never trasnferred. I bounced several checks and because of a recent tragedy in my family literally freaked out.

The next person (actually 11 people later) asked for my confirmation number. I hadn't be given one. He then of course blamed me for not checking to see if there was a number and did nothing for me except to transfer the 500. I thought that as usual, I have to do everyone's work for them on top of my three jobs and was very angry--but I got nowhere.

for the next transfer, I made sure to ask for a confirmation number because the phone representative did not come forth with one. He told me there weren't confirmation numbers. I insisted that he give me some number, any number. He checked with his manager and she told him there was a number but it had a different name, like transaction number or transfer number--who knows--some bank jargon. He was nice and apologized that he didn't know about the number and gave me something. To me that was proof that one hand doesen't know what the other is doing. So I lodged a complaint, asking for simply the fees for the checks that had bounced with the first non-transfer. That was a year ago and I haven't heard a word. I don't expect to, although some representatives tell me that the complaint is still active.

I lost about 100 in bounced check fees, but because of the recent suicide of my step-son, I was an emotional wreck for about a week. When things go wrong, I flash back to how many things went wrong with my step-son. There was quite a bit of agony (and still is, but for other reasons). All I want is an apology and the bounced check fees reimbursed.

Harold of Irvine, CA June 28, 2008

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 June 28, 2008

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 May 28, 2008

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 May 22, 2008

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 May 19, 2008

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 May 9, 2008

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 April 13, 2008

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

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