Can anyone make an educated guess as to what options people who are upside down on their mortages, have once their mortgage holder is bought out because of bad debt?
Take Washington Mutual for example. Say I have a mortage on an investment property, the note on it is 200,000, but the house is only worth 120k retail. I have to sell it or face fourclosure/short-sale. Since JP Morgan Chase just bought Washington Mutual at a fraction of the value of the debt, can I renegotiate my amount of my debt so that my payments can be affordable? It seems like a win/win. The bank can continue makning interest money becaues their cost-basis for the note was so low, and I don’t have to kill my credit.
OR, the bank can restructure the debt, and take the differecne and add it to the end of the loan, as a balloon payment.
Thoughts??? Has anyone heard anything???
Not happening, in this scenario you have a $200k contract (note) with WAMU or its assigns. JP Morgan now owns the note and you are obligated to continue making your loan payments as originally agreed. While your loan is a debt to you it was an asset of WAMU and sold at current fair market value to JP Morgan.
As of right now WaMu will be operated as a division of JPMorgan…
The note will be transferred. My only caution will be to see if FDIC aquires any of the non- or under-performing notes as condition of sale. We saw a lot of that with the RTC (Resoulution Trust Corp) seizures and “sales” during the early 90s.
For the foreseeable future you may very well be dealing with the same WaMu department. Have you tried to contact their loan workout department? Call the customer service number on your statement – they may be willing to work with you??? Worth a try?