The mantra over the last year has been all about change. I think I can handle change but the constant changing of our financial institutions is now becoming concerning. I used to be a WAMU customer, tonight I am a Chase customer...BUT for how long?
Over the past few weeks I have heard numerous complaints about WAMU and Chase and their recent credit practices. It really got me to wonder how soon something would change. Tonight's news verified my thoughts.
My Client shared with me about his WAMU Checking account.
- My client has two checking accounts. The first account is over 4 years old. The second account is 4 months old.
- On September 12th two checks were deposited into the new checking account.
- On September 19th, my client was trying to reconcile is account balance on the internet and found that a 21 day hold was placed on both checks.
- My client was never notified of the bank hold on either check.
- On September 22nd, my client provided copies of the two canceled checks to WAMU.
- The two checks that were deposited on September 12 were cancelled on September 18!
- As of tonight, my client is still waiting for WAMU to release the funds.
Second Client - Chase Line of Credit
- These clients wanted to purchase a home using their line of credit.
- Their home is owned free and clear and does not have a mortgage on it.
- The home could sell for between $500,000 and $600,000.
- The line of credit was for $200,000.
- There was no balance on the line of credit.
- Late Friday night my client learns (again on the internet) that there is a ZERO line of credit available.
- Chase closed the line of credit without informing the customer!
- A friend of mine confirmed that the same had occured in his line of credit acount!
The writing was on the WaMu walls.
Do you think that this failure will restrict ready and willing buyers from making purchases?
What do you think about the WAMU or Chase short sales - will it become a reality or just a myth?
Leolinda,
Well I guess since the feds just seized WAMU I guess some of these points are moot.
Larry, I would be more concerned about the lines of credit being frozen with Chase.
LeoLinda,
Thanks for the post. I had a closing scheduled for a client using her line of credit for the purchase, only to learn the night before closing, that the line had been closed. Fortunately, she works for a bank and her employer advanced her the money. The other thing we learned after her boss read his line of credit agreement is that, the lender can close the line for any reason at any time (it is in the fine print).
Catching hold of the giant's tail as it continues to spiral out of control, isn't going to be easy as we see more financial concerns fail!
William, lots of buyers use their lines of credit to purchase a home. I guess that Chase needs to reduce the possibility of people maxing out their lines of credit then skipping on the tab.
Hi Leolinda.......There is no doubt that lines of credit are real problems , they can be pulled at any time
I had a deal not long ago where the buyer put up a hundred grand off a line of credit, the check cleared, and was then PULLED from the deposit..Yes it can happen
I now am using an attorney with an automatic sweep account for any furher transactions..Its just too crazy now to wonder what these institutions are going to do.
On a more personal note, I just transferred 2000 to my wifes account. earlier in the day I had bought gas and bought a new blackberry. FOR MY SAFETY AND SECURITY my Wachovia bank bounced the deposit to my wifes account....apparently I am not allowed to do more than 2000 in a day without thier permission...Trust me, you really don't want to bounce a check to your wife....ANd yes, we had the money, and I had to go in and sign for a waiver allowing me to do more than 2000. per day out of my account.....crazy stuff, crazy stuff
Gee, I think I am getting nervous too, sound like time to be cautious when picking which bank to use for loans or deposits.
Mike,I guess that is one way the banks are trying to protect their assets unfortunately it is hurting and sometimes alienating the most import asset - their clients.
Mary, coffee cans may be the answer. LOL You just can't tell, you think that your money is ok, then find out that its not.
Hold on for the ride, we are going to see only change in our lifetime.