Do you have a mortgage originated by Washington Mutual? Has Chase instituted foreclosure proceedings against you based on that loan? If so, you may have a claim for wrongful foreclosure remedies.
Prior to the financial crisis of 2008, Washington Mutual (or “WaMu”) was known to the public primarily as the go-to source for easily approved loans, and to the financial industry as the go-to source for loans that could be packaged, securitized, and sold. Subsequent to the financial crisis and the exposure of the practices that led to it, WaMu became synonymous with shoddy lending practices, predatory terms, and toxic securities.
The financial crisis ultimately led to WaMu’s implosion, necessitating the intervention of the federal government, who placed WaMu into receivership with the Federal Deposit Insurance Corporation (or “FDIC”). The FDIC sold WaMu’s banking subsidiaries to JP Morgan Chase for pennies on the dollar, and WaMu’s holding company disappeared into bankruptcy.
Subsequent to the bankruptcy, Chase proceeded to foreclose on defaulted mortgages that had been originated by WaMu. However, according to some reports, many of these mortgages, presumably transferred to Chase as part of its deal with the FDIC, may not actually have been transferred because of the status of the underlying loan and its securitization. Accordingly, in many cases, Chase may have had no standing to initiate foreclosure proceedings.
In such a case, where a homeowner has had foreclosure proceedings initiated against it by the wrong party, a homeowner has the ability to assert various potential defenses and affirmative claims for relief, including an action for wrongful foreclosure and/or slander of title.
Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully brought lawsuits on behalf of aggrieved consumers. We are currently investigating this matter, as well as other claims against banks that have wrongfully initiated foreclosure proceedings against loans they do not actually own. If you believe that your WaMu-originated loan has been wrongfully foreclosed on by Chase, please contact us to discuss your legal options.