Loan Modification Forum - LoanSafe.org - View Single Post

just the facts · 01-15-2009, 10:28 AM

In answer to your questions...

1. Did you find your attorney locally or through this forum?

No but I'm sure there are some good ones.

2. Did the attorney require a substantial amount up front or after?

$3,000 up front for entire process

3. What are the terms of your modification?

There are no specific terms until you "pass" the IndyMac test of making a payment on time via a cashier's check, for the amount they tell you. Generally about 50% less than what your previous payment was. After this, your attorney negotiates (mediates) with IndyMac. In other words, it appears attorney's don't really have much power and accept what IndyMac offers. From what I can tell it's not a true negotiation. From what I'm hearing it's generally 2% to 4% for 5 years rising one (1) percentage point per year at year 6 and capped somewhere in the low sixes.

If you have other options (family in town, friends, other support you can lean on or your not 100% committed to the area) then I'd just call Indy and see if you can do a short sale and get rid of the house. If I had it to do all over again that is what I would do if I had a support system but I'm here all by myself (SD) and have 2 cats and a dog and work from home. So if I didn't have a place to live and a destroyed credit history that would only compound the problem so I decided to go the loan mod route since anything you do, default, short sale, foreclosure your credit will be destroyed so be prepared for that. Foreclosure will linger for 7-10 years and default/late mortgage payments about 3-4 years, not sure about short sale but worse than a default but better than a foreclosure.

Hope this helps and makes some sense.

01-15-2009, 10:28 AM	#24 (permalink)
just the facts Member Join Date: Dec 2008 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Help with Indymac In answer to your questions... 1. Did you find your attorney locally or through this forum? No but I'm sure there are some good ones. 2. Did the attorney require a substantial amount up front or after? $3,000 up front for entire process 3. What are the terms of your modification? There are no specific terms until you "pass" the IndyMac test of making a payment on time via a cashier's check, for the amount they tell you. Generally about 50% less than what your previous payment was. After this, your attorney negotiates (mediates) with IndyMac. In other words, it appears attorney's don't really have much power and accept what IndyMac offers. From what I can tell it's not a true negotiation. From what I'm hearing it's generally 2% to 4% for 5 years rising one (1) percentage point per year at year 6 and capped somewhere in the low sixes. If you have other options (family in town, friends, other support you can lean on or your not 100% committed to the area) then I'd just call Indy and see if you can do a short sale and get rid of the house. If I had it to do all over again that is what I would do if I had a support system but I'm here all by myself (SD) and have 2 cats and a dog and work from home. So if I didn't have a place to live and a destroyed credit history that would only compound the problem so I decided to go the loan mod route since anything you do, default, short sale, foreclosure your credit will be destroyed so be prepared for that. Foreclosure will linger for 7-10 years and default/late mortgage payments about 3-4 years, not sure about short sale but worse than a default but better than a foreclosure. Hope this helps and makes some sense.