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washington mutual & HELOC - 9/17/2008 5:10:25 PM
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BJinWA
Posts: 90
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i have a heloc at washington mutual. i'm planning some improvements to my home which will take about $10,000 in the near future. given the stability of wamu, does anyone think i should take the 10k now and park it in my savings? i have read that some banks are cancelling advances on certain loans. do you think there is a danger of that?
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RE: washington mutual & HELOC - 9/17/2008 5:39:55 PM
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GroupW
Posts: 2913
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From: Up in the hills of Colorado (very BIG hills...)
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It's a possibility, but noone outside of WM really knows. I'm not sure even they know. It's a foregone conclusion that they'll announce more losses this quarter. I'm guessing just the commercial portion of their balance sheet has over $500 million in mark to market losses this quarter. That doesn't include actual credit losses on their mortgage holdings & other mark to market losses elsewhere.
One thing to consider is how much it would cost you in interest to draw it down & park it vs. how much it would cost to refinance it (if you can - US Bank for example is still writing loans). You might be better off to refi with a stronger bank if you are able to.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: washington mutual & HELOC - 9/17/2008 5:45:38 PM
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BJinWA
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thanks,
i thought about doing the refi route, but this 10k is the only money i see needing in the next, well, forever. i have an adequate emergency fund (3 months) in savings and i plan on selling a condo when my daughter graduates from college. Condo markets don't fluctuate too much in college towns, but even if it dips 50% in value, i'll still have money to pay off the 10k.
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RE: washington mutual & HELOC - 9/17/2008 9:06:49 PM
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Random
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From: Zipperhead
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If you are going to need it, I would draw it now, because you may not be able to in the near future.
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"That which has always been accepted by everyone, everywhere, is almost certain to be false." -- Valery
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RE: washington mutual & HELOC - 9/17/2008 10:01:27 PM
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prophet
Posts: 580
Joined: 4/19/2005
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Queuing to withdraw cash
By Matthew Garrahan
Published: September 17 2008 03:00 | Last updated: September 17 2008 03:00
The queue to get into Washington Mutual's large Santa Monica branch on Wilshire Boulevard started forming half an hour before the bank opened yesterday, writes Matthew Garrahan in Los Angeles. The anxious faces of those in the line highlighted the uncertainty now surrounding its future.
Washington Mutual has been beset by rumours it would be the next retail bank to fail following the collapse of California-based IndyMac earlier in the summer.
But Monday night's cut of its credit rating to "junk" status was enough to persuade many of those queuing yesterday to get their money out of the bank.
"As soon as they downgraded it I decided to come and was here at 7am," said Lewanne Elwes, an artist manager. "I can't go on waking up in the middle of the night all worried after watching the news . . . I'm tired of this."
Fritzie Leao, who has had an account with WaMu for 15 years, said: "Last night was the clincher for me." Although US law protects account holders with deposits of less than $100,000 (€70,680, £56,000), she said she did not want to take chances.
Others waiting for the bank to open had other concerns.
"I've been thinking about getting my money out for weeks," said Steve Baker, another WaMu customer. "Then today I got an email from a friend who works in a bank downtown . . . apparently there's a rumour on the internet that they're going to close this afternoon."
As the line grew, some of those at the front began arguing about who was responsible for the banking crisis. "This is all because of deregulation," said Ms Elwes.
http://www.ft.com/cms/s/0/dd9592fa-8450-11dd-bf00-000077b07658.html
_____________________________
Create in me a Clean Heart, O Lord.
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RE: washington mutual & HELOC - 9/18/2008 12:14:50 AM
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GroupW
Posts: 2913
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From: Up in the hills of Colorado (very BIG hills...)
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Maybe a bit less urgency to draw it down based on today's news. The likelihood that they are going to get bought just went up a bit. TPG is an investment group that made a very large investment in WaMu a few months ago. There was a clause in their agreement that would have obligated WaMu to pay a very hefty fee to TPG in the event the company was sold or had to raise additional capital.
This clause got waived today.
There are only two reasons TPG would do that - 1) WaMu wants to raise more capital. 2) TPG doesn't want to stand in the way of WaMu selling itself.
Between the two options, the sale is the more likely. The general feeling is that there is a strong possibility of a sale being announced in the next few weeks.
If it does get sold, your access to HELOC funds should be substantially improved.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: washington mutual & HELOC - 9/18/2008 2:06:21 PM
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GroupW
Posts: 2913
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From: Up in the hills of Colorado (very BIG hills...)
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OK - today's news...
Goldman Sachs has been engaged to sell WaMu.
I knew I was right about it being close to being sold, just didn't expect the evidence to emerge THAT fast.
And now for my next crystal ball trick, .....
If they can't get it sold, I think I would draw down the funds you need at that point. I think there's a good likelihood that they get sold and the HELOC's get backed up by a stronger player. This is assuming you have a prime HELOC and not alt-A or sub-prime. Alt-A or sub-prime helocs I think I'd draw down since any buyer is going to want to exclude certain assets from the transaction and that's a big one.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: washington mutual & HELOC - 9/18/2008 3:28:43 PM
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BJinWA
Posts: 90
Joined: 5/9/2007
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quote:
And now for my next crystal ball trick, .....
WOW, you are good. thanks for the advice. i'm going to keep an eye on it and in the event it doesn't sell, draw down. if it takes awhile, the work may be done and i'll need it anyway.
i'm a "prime" i assume. my interest is variable at 1/4 percent below prime. NO WAIT------that makes me "subprime" wink wink, groan
it's ok, not even my best friends would have laughed at that.
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RE: washington mutual & HELOC - 9/18/2008 5:33:10 PM
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GroupW
Posts: 2913
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
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Well, if you follow my advice, just remember that you get what you pay for 
Are you local there in Seattle? Friends tell me that there are WaMu resumes flying all over the place.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: washington mutual & HELOC - 9/18/2008 9:41:32 PM
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GregandJenny
Posts: 616
Joined: 2/16/2006
From: Near Seattle Washington
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quote:
Are you local there in Seattle? Friends tell me that there are WaMu resumes flying all over the place.
I live in the Seattle area and know some that are trying to jump ship.
G
_____________________________
It does not have to be well with my circumstance to be well with my soul!
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RE: washington mutual & HELOC - 9/18/2008 11:51:45 PM
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BJinWA
Posts: 90
Joined: 5/9/2007
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ok groupw-------you drive a hard bargin.......but i'm willing to pay double what i paid you........
enjoy
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RE: washington mutual & HELOC - 9/19/2008 5:20:20 PM
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GroupW
Posts: 2913
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
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quote:
ORIGINAL: BJinWA
ok groupw-------you drive a hard bargin.......but i'm willing to pay double what i paid you........
enjoy
That's better than any other offer I've had this week....
BT
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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