Washington Mutual Short Sales – What You Need To Know
Update: WAMU is now Chase.
Washington Mutual does conduct short sales on a regular basis. However, if you are planning to go through them for selling your home off then beware. Make sure you know what is in store for you!
What if you can’t sell?
There might be a chance that you cannot find a buyer for the amount you are quoting. In such situations Washington Mutual will typically ask you to submit a Deed instead of Foreclosure. This they claim is to help your credit score. However intelligent homeowners know that this will eventually get listed on your credit report. Thus it will entail the same situation as having gone through a regular foreclosure on your credit history – and that does not help in the score improvement in any way.
Re-appraisal needed
Sometimes even after you have managed to find a buyer for the price you quoted, you will find Washington Mutual asking for a re-appraisal. This can entail another round of running around, getting the required information collated and eventually maybe even losing out on the buyer. Therefore, your best bet to avoid this situation is to have the re-appraisal documents and information handy with you even before starting out the short selling process. That way when it comes to that you do not waste time collecting it.
Things you need
You will need to have a handwritten letter from you stating the details of the situation. The explanations will need to be concrete with definite examples. The reason why the mortgage cannot be afforded by you will need to be cited appropriately. Then you will also need to provide them with a copy of the sales contract, the listing agreement, authorization letter, HUD-1, stubs for date pays for the previous 2 years, tax returns for the previous 2 years and a financial form provided by Washington Mutual.
Contacting them
When you contact Washington Mutual for a short sale, make sure to ask for their work-out department. You could also ask for the relevant personnel handling default loans.
Stop payment
If you are having difficulty in getting the attention of Washington Mutual for short selling then one way is by stopping your payments. Once you stop paying your monthly mortgage bill you will automatically start getting their attention. Then when they contact you, you can explain your situation to them. This probably won’t work if you have CD’s with WAMU or Chase. See Chase CD Rates or Bank of America CD Rates.
What I Did In My Short Sale
What I did (hiring a real estate agent with short sale experience) worked for my situation. It may not for your short sale, but I found it the best option. Working with a real estate agent you at least can get a background on the person, and if they work for a larger brokerage you know they have resources to help you. Think short sales are hard for you? They are equally as hard on the real estate agent! Getting a short sale deal done (especially right now with the overwhelmed lenders like Countrywide) takes alot of work. I do think its the best option vs. foreclosure though. You can also read my 7 steps to a successful short sale guide.
You Need An Experienced Short Sale Agent!
From my blog here I’ve developed an extensive network of real estate agents that have short sale experience. If you’d like a referral, fill out the form below and I’ll have someone available in your area to help with your short sale ASAP.
{ 8 comments… read them below or add one }
How did you get WAMU to forgive your loss in your short sale. I just went through one and they are trying to come after me for the negative. I didn’t realize they could do this. Any info would help.
Thanks
I am in the process of buying a short sale. The short sale acceptance letter states that WAMU is going after the seller for the remaining balance.
It may be that they think the seller has money or assets they can go after.
My realtor claims that they can no longer write these off because they have enough write-offs to last 5+ years. So they are changing their policy to collecting the debt.
Washington mutual has thier short sale package requierments on thier web site. you do not need tax returns anymore. and hardship letter is typed on thier form, not hand written (too hard to read). They are trying to save on paper being faxed. so paystubs or unemployment check etc is fine. good luck.
Can you please share with me a contact phone number for their Loss Mit dept. I have a short sale with them and cannot reach anyone. I am pulling my hair out with the numbers I have that hang up on me and disconnect.
Tara O’Brien
Edina Realty
Minneapolis, Minnesota
Tara,
I feel your pain. When calling these number you will need all the loan # and last 4 of SS# try these number below. 1-866-926-8937. 1-866-244-1406. Good luck.
I have had a contract to purchase a WAMU short sale property for cash for 5 months now and can get no answers at all. How can it take this long? Any ideas how to get it over with one way or the other?
William –
I just got a contract for a short sale with WAMU as well. There was a couple ahead of me that had one and dropped out after 3 months of waiting and getting no where – that is where I can in and took their place.
Have you found anything out? My broker and the listing agent can’t seem to get anywhere and this house has been listed since 12/01/2008
Anything would be helpful – scottyz789@hotmail.com
Short sale, The Chase given verbal approval, do you know how long will it take for getting the written approval? I has been waiting for 2 weeks!!