WAMU doozy of a debacle

[Joel Fraser]

First let me say how much I appreciate this forum. I have spent the last 2 days reading as much as I can. I still have not found anyone else here with quite the same problem as us. Here is our story in a nutshell. Purchased home 11/2000 Refi'd 3/04 when husband was sick with cancer to put in my name only, just as a safeguard. I qualified with no problem, as I was a mortgage processcor. We only borrowed max LTV of 75% to get some cash out to help us through hard times and pay some medical bills. Refi was for $190,000.00. Appraisal was for $265,000. Husband lost our family business when he was sick. Literally lost $100,000 in income per year in 1 week. Ouch. We filed for BK, gave back both cars, toys, everything in CH 7. and received discharge 5/2005. We did not reaffirm house, which was an option ARM. BK actually discharged house also. WAMU realized mistake and filed initial paperwork to foreclose on property. Trustee of BK case closed file with neither WAMU nor us owning home that was discharged. Our last payment on the house was 11/2006. Tried to refi to clear title and keep home in 2007. New mortgage company called WAMU for a payoff. Told it was discharged. Zero balance. Called WAMU for months trying to talk to someone. Our file was literally lost they told me. HHhmmmmmmm? Fast forward to July 2007, WAMU began foreclosure process again. After being delayed many times, house finally went to sherrif auction September 14,2007. Big surprise, no one bought house with new balance of $242,000 with all extra fees. We are from Michigan, housing market has tanked here. House is now worth maybe $125,000 due to economy. We are now still in the redemption period of 12 months due to having more than 5 acres. WAMU's attorneys who handled foreclosure, and WAMU both stated they do not want house. They are willing to work with us for a resolution. We now qualify for a new loan, FHA, to buy house back. Problem is it is not a refi, since house was in my name only, and is now going back into husband name due to my credit with foreclosure on it!!!!!!! It is not a purchase since he is on the deed only, not mortgage. According to WAMU they will take a short sale, because thay agree house is not worth what is owed and they already wrote loan off in BK. Any money they get is extra. We do not qualify for a modification with WAMU with all this extra stuff thrown in. It is not a purchase, it is not a refi. Even WAMU's attorney, WAMU and their appointed Community Outreach Director hired to handle foreclosures and short sales in MI, no one knows what to do. We have been in this house for 8 years. Love this house, and have the ability to make payments on this house, no problem. We are just not willing to pay double what it is worth. I hope I explained everything right, I know it is confusing. And yes I have talked to attorneys, real estate attorneys, etc. Short of taking the United States BK Court to court, calling the trustee, judge, attorneys to testify under oath that they made a mistake, we do not know what to do. Attorneys around here won't touch this case. Way too complicated. I am sending a qualified written request to WAMU today. WAMU's position now according to Community OUtreach Director is for us to submit a short sale package, and go from there. Remember in 2007 I tried to refi and WAMU would not let me since it was discharged? Please comment on what you think we should do. Good news is since we have been mtg payment free for over 2 years, we have paid all our debt off, and are back on track. Any ideas?