Construction to Perm loan with Indymac

[flsurfergrl]

Hi everyone. This is my first post, thank you so much for all the valuable info on this board.

Anyway, I have a construction loan with indymac right now. I'm at the end of the term, and they are pressuring me to covert it to a perm loan. They are only offering me a 5/1 arm at 7%. I'm in Orlando, and my house has gone from an appraised value of $580K a year ago, to under $400 now. I owe $430K on the loan (lost my downpayment +some).

I've tried to pressure Indymac to offer me a more reasonable loan-we want a 30y fixed. They are telling me in order to negotiate anything, we must convert. Indymac also says they own the loan, and no one will touch it with a 10 foot pole. I'm assuming when I convert the loan that they'll also be the investor since it's not a conforming loan.

Any advice? Should I just covert, and then try to modify? We've had a loss of income (self employed), and plan to fill out a financial hardship package.

I feel like I have some pull right now, but they keep telling me i have no choice. I've mentioned the fact I cannot afford the 7% rate, but they seem to not care...

Thoughts?

Thanks in advance!

[Dan Bailey]

flsurfergirl,
Glad you found the forum and posted.
*** or Moe will be by as soon as possible to give you some advise/direction to take. We are all on different time zones, so hang in there.

[Moe Bedard]

Hi flsurfergrl,



Welcome to the forum and thank you for joining..............

We can not advise you on whether or not to convert the construction loan to a permanent loan in order to try for a modification which wouldn't have any guarantees.................this is a decision that only you can make based on your financial situation.
It would seem that it is the only way for you to even begin the process to see if you qualify for a modification.

Once you decide............the modification process for IndyMac can be started online...............
IMFB Banking & Lending