How to Stop a WAMU Foreclosure

Washington Mutual Inc., also known as WaMu, filed for bankruptcy on Sept. 26, 2008 -- a day after it was sold to JPMorgan Chase for $1.9 billion, according to Bloomberg.com. Before failing, WaMu had more than 2,200 branches, including mortgage loan offices. The company's mortgage and other banking business was taken over by Chase Bank. Stopping a foreclosure on a former WaMu mortgage will require working with officials at Chase.

Instructions

1

Contact a housing counselor specializing in foreclosure prevention. Find a counselor in your area by checking the website for the U.S. Department of Housing and Urban Development (see Resources). HUD maintains a list of government-approved counselors who are trained in legal and ethical methods for stopping foreclosures.

2

Visit with the counselor in person to talk about your foreclosure issues. Bring copies of all current information related to your foreclosure issues, including notices from the bank and account statements. Tell the counselor the mortgage was originally granted by WaMu.

3

Authorize the housing counselor to contact Chase on your behalf and offer a proposal for stopping the mortgage. Options include asking the bank to modify the terms of the loan so that the missed payments are tacked onto the end of the loan and that the terms of the loan -- such as the interest rate -- are changed so that you can afford the payments. Or the counselor may negotiate a special hardship plan, resulting in reduced payments over a temporary period while you recover from a setback. After that the plan may allow for you to make up for the missed payments by paying a little more each month.

4

Participate in a three-way telephone conversation with Chase officials and the counselor to form an agreement for stopping the foreclosure and bringing your account current.