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Step 1
Washington Mutual says the first thing its borrowers should do if they are at risk of missing a payment is to call one of the following numbers:
For customers current on their WaMu mortgage who want options: (877) 551-2736 (weekdays 5 a.m. to 6 p.m. PT)
For customers late on their WaMu mortgage who want options: (866) 926-8937 (weekdays 5 a.m. to 5 p.m. PT)
The numbers and additional help can also be found at the "Need help with your mortgage?" page of WaMu's Web site (see link below in resources).
"Our firm belief is that early intervention is instrumental to helping our customers find ways they can overcome financial obstacles to keep their home," the lender tells Bankrate.com, the Web's leading aggregator of financial rate information.
"We view foreclosure as a last resort and want our customers to know that our primary goal is to keep them in their homes with payments they can afford."
The bank adds that, "We encourage our customers to contact us as soon as they anticipate difficulty in making payments on their mortgage so that together, we can explore and discuss their various options." -
Step 2
WaMu says it has a number of solutions that it can make available to borrowers depending on their individual circumstances.
"Under our $2 billion subprime assistance program launched in April 2007, customers who remain current on their existing subprime loans and anticipate pending payment increases may apply for new, discounted fixed-rate loans or other mortgage products," the bank advises.
"We are also focused on refinancing eligible borrowers into prime loans as part of the program, which has been very well-received."
WaMu borrowers can learn more about various workout options and other resources available to them by visiting the WaMu's "Need help with your mortgage?" web page and clicking on the "Know your options" tab. -
Step 3
One of WaMu's options is called the "REPAYMENT PLAN."
"If your mortgage payments are past-due, we may be able spread out the past-due amount over several months," the bank says. "Each month you will pay your regular monthly payment amount plus a portion of the amount you are behind until your mortgage loan is deemed current." -
Step 4
Another option WaMu can offer customers in financial trouble is called "FORBEARANCE."
"If your mortgage loan is past-due and you're overcoming a temporary hardship, we can establish a forbearance plan," the bank says.
"This plan will allow us to suspend or reduce your monthly payments for a short period of time to help you catch up. We can also establish a forbearance agreement if you are trying to sell your home or complete a loan modification." -
Step 5
Yet another option offered by WaMu is a "SHORT SALE."
"If you owe more than your house is worth, we can work together to sell your house to payoff all or most of the mortgage amount," the bank says.
"A short sale allows you to control the timing of the sale. The property must be listed on the Multiple Listing Service, or MLS, with a Realtor." -
Step 6
A last resort option offered its borrowers by WaMu is a "DEED-IN-LIEU."
"As a last resort you can voluntarily transfer the property title to the lender," the bank says.
"This is called a "Deed-in-Lieu" of foreclosure. You voluntarily deed your property in-lieu of losing it at foreclosure. If you do not have any other loans, liens or judgments attached to your house, then we can discuss ways to transfer title. We would explore the deed-in-lieu only after we have exhausted all your other options." -
Step 7
WaMu says it has a good record helping customers when they have financial difficulties.
"In 2007, we helped more than 35,000 borrowers avoid foreclosure and stay in their homes through loan modification and other forms of assistance," the banks says.
Borrowers should note that WaMu is a key member of the private sector initiative called HOPE NOW and has worked very closely with the Department of Treasury, the American Securitization Forum and other partners in stepping up efforts to help borrowers keep their homes when they require assistance given the challenging market conditions. -
Step 8
WaMu offers it customers help through various community outreach programs.
"As part of our extensive efforts to increase customer awareness of their options, WaMu participates in monthly Homeownership Preservation Workshops organized by our nonprofit partners to assist distressed borrowers and to complete workouts on location," the bank says.
"WaMu maximizes the opportunities to meet with our customers by reaching out to them via mail and phone and personally inviting them to attend the events, which are often held in major metropolitan areas experiencing high rates of foreclosures."
The bank says it also supports the Homeownership Preservation Foundation that links homeowners in danger of foreclosure to the (888) 995-HOPE hot line and local NeighborWorks organizations to receive free counseling from HUD-approved agencies.
