Can I File Suit Against Wamu/chase?

[Joel Fraser]

I am so glad I found this forum and I need some information as soon as possible as I dont know if I have a predatory lending practice suit against Wamu (and the broker) which is now Chase. This is my story. 3 years ago I bought a house for $835,000. The first loan was for $667,000.00 after my down payment. I took out a loan from my first home (which I kept and rented out) for $80,000 and another 2nd loan from Wamu for the other $80,000. It was a variable loan and the payment was $2223.00. The payments would go up about $150.00 per year which was not bad. so my understanding was the maximum would be $4182.00 which would start in 2010. I was making the payments and doing ok..then a year later the same broker from WAMU starts calling me and offering me this other loan which she said was a great loan for me and I should refinance. I trusted this woman and didnt really think much about it. I signed the documents (stupid me) and now instead of a balance of $667,000.00..there was the additional escrow fees, the property taxes were due within 10 days of signing escrow so it was paid out of escrow, and HAZARD INSURANCE for $2300.00..I already had a homeowners insurance which would have been sufficient. So that brought my principal to around $697,000.00. My payments did go down to $1927.00 and I am still paying that amount which is a negative, but 2 years later because the interest on the negative has been accruing, I now owe $745,000.00. So this woman made her commission 2x on me within the year and I was so stupid in signing this new loan. She was even trying to get me to refinance my rental which has a low fixed and I have been paying for a few years. The new refinance would have been another ARM and put me in foreclosure on that property as well. Last year I called her as I was concerned about my payments going up as everyone else and without me asking..she immediately had WAMU prepare a modification at 6.3% and payments of $3300.00 and take out the negative. They were insisting that I sign this as this was very good deal and not too many people qualify for modification. I didnt have to submit any initial paperwork at...but I didnt sign the documents they FEDEX because it sounded too good to be true at the time and my brother advise me against it. I noticed that the initial rate on the *Initial finance in September 2005 * Initial 1.250%, Index MTA, margin 2.60% Lifetime the cap is 9.950.% *The refinancing in October 2006 - * initial rate is 1.100, index MTAMargin 3.100% lifetime rate cap 10.150% Well, now that I compare these 2 this is not a good deal at all. I think I was ripped off by this broker. Not only did I get worse terms, but they added additional $20,000 to the principal. I think this was predatory lending as she was writing and calling me all the time for refinancing and assured me this was a better loan for me. I never read the first contract and was relying on her word that this was a better deal for me. Now I know how to read real estate mortgage contracts a little better. Please help me out with any information so that I can proceed accordingly. I was going to write a letter to have my loan modified so that I can just pay without the negative adding up. I have not been able to pay the additional payments because of business setbacks, but now I am getting better financially and want to take care of this before foreclosure. We just had a foreclosure on my block which sold for $500,000..These homes were selling for $800-900,000 range. So now I am stuck with a home where i owe more than $800,000.00and according to some of you, CHASE will not decrease the principal. Please help with ANY information you have. Should I retain an attorney?The last loan closed in December 2006. If the banks know they will make good money on foreclosures, will they be willing to modify? Thanks for your help!!!