First, I wanted to compliant all those who contribute to this forum. The content is outstanding and has helped me and I know many others.
Hoping I could get some advice or thoughts on my situation. A bit of background- I purchased a condo about 3 yrs ago in the heart of downtown Chicago for 380k. In 2004 I applied a 10% deposit preconstruction. Because of numerous delays the condo was finished 2.5 yrs later. When I made the deposit I was in a much different career and making a significant amount more than my current job as a union firefighter. The markets were also in much different shape and I figured I could use the property as an investment tool or home. As the market dropped the property was finally finished. I had to close on the condo as a 2nd home (I had purchased my current home only 4 months prior) but shortly after found a renter to keep the mortgage current. I used a state income/ stated asset loan since I knew my W-2 income would not qualify. I have remained current on the mortgage payments for 3 yrs but have made the decision to stop losing 8-10k a year that the rent does not cover. I originally invested 80K on the down payment and the condo is currently 120k underwater. I have put forth my best effort to honor my commitment, but I have to stop the bleeding of my hard earned savings. I can not let this bad decision ruin my life. As of March, I will have my first 30 day late payment (on anything, EVER!).
I am trying to get ahead of the lender and make a case against them before they come after me. I have sent a QWR to my servicer (JP Morgan/ Chase) who I know does not own the actual note or mortgage. (I closed the original loan with WAMU and Freddie Mac now says there have the mortgage on their website, but I know it was securitized as soon as the ink dried, especially since it was a 5yr IO ARM). I have requested they prove who has actual ownership and possession of the mortgage and note and all the assignments with a legitimate chain of title. I have check county records and WAMU was the last recorded mortgage. Assuming they will fail to produce honest documents or use MERS, what would be my next step in the process? I do have an attorney at my disposal, but don’t know if I can really recover any thing more than time to an eventual foreclosure. I see plenty of cases across the country where judges do protect standing but it seems none of them have a complete outcome. I assume in most, the true note holder eventually comes forward and finds a way to get a foreclosure judgment. I know I can open TILA or RESPA complaints if they fail to respondm, but am unsure if any TILA violations exist. I have also heard rumors that WAMU was selling loans before some where even closed. A situation I have read that would automatically make the transaction invalid....? Once again I want to make the best case possible and also have some chance at a good recovery. Any ideas are greatly appreciated. Hope I made the situation clear enough and can elaborate if necessary.