Washington Federal Mortgage Complaint

Washington Federal Mortgage department,

Other mortgage Loan servicing, payments, escrow account California

In -/-/2016 we started the process for a short sale on our primary residence. This short sale was necessary because I had received an offer for a new position in - California. The current housing prices had not caught up to what we owed on our house and with the cost of the sale, we would be short funds to pay down all of the liens. I submitted for and was approved for a HAFA short sale through - Bank. Under the HAFA guidelines 2nd lienholders ( Washington Federal ) would be guaranteed up to $12000.00 for the balance of the loan and the remainder would be forgiven by the bank. California legislature passed a law, SB 458, which protected the home owner from being pursued by a lender for the unpaid lien balance. We worked with - and informed him of our circumstances, provided financial documents to show we could not financially make up the difference once the house closed nor would we be legally obligated. - refused to take the $12000.00 for the payoff of our loan of $19000.00. We had a buyer that was qualified and ready to move in, however it was apparent we would need


could not be on the title documents. - again refused to take the $5000.00 plus the $12000.00 and forgive the $2000.00 we had left on our balance. The only way - would release the lien was if we agreed to continue making payments on the remaining $2000.00 once the sale was final. Other than the document he created and we had to sign, we were not legally obligated to continuing making our payments as per SB 458 and HAFA guidelines. We submitted a copy of the signed document to - Bank and they refused to proceed with the short sale because the letter violated state law ( SB 458 ) and HAFA guidelines. Our realtor received the $5000.00 from the buyer and took personal money and paid off the Washington Federal balance so the house would not go into foreclosure. We paid her back from our moving expenses proceeds from the HAFA program. - handling of this process were both unethical and unprofessional.