Loan Modification Readjustment - Loan Modification Forum

LadyRN · 07-21-2009, 01:23 PM

Hello all! Here's my story...

In 2005, we refinanced through IndyMac using Power Option ARM. We payed only the minimum option of 1,600/month. The interest rate at that time was 7.926%.

In 2008, our loan was modified with the interest rate of 4.498% effective until July 2011.

Currently our mortgage with IndyMac is $349,703.99. My monthly payment is $2,330.93, with the same interest rate of 4.498% since our loan modification in 2008. I have a child who recently graduated from the University last year who is still looking for employment in this tough economy, another child who is still attending college and 2 other children still in High School who would be going to college within 2 years when the "modification agreement" expires or resets in 2011. By that time, I will be financially supporting 3 college students and I know I won't be able to afford my monthly payments when the "modification" resets.

My question is: Are there any other options to lower my principal? By the time my "modification" resets, would it be possible to readjust or modify the loan to fixed 30 or 35 years loan in order to lower my monthly payments to cope up with the financial crisis?

Thanks in advance for your advice!

LadyRN · 07-25-2009, 01:39 PM

I am assuming there are no other options? Any thoughts from this forum?

07-21-2009, 01:23 PM	#1 (permalink)
LadyRN Member Join Date: Feb 2008 Location: Northern CA Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan Modification Readjustment Hello all! Here's my story... In 2005, we refinanced through IndyMac using Power Option ARM. We payed only the minimum option of 1,600/month. The interest rate at that time was 7.926%. In 2008, our loan was modified with the interest rate of 4.498% effective until July 2011. Currently our mortgage with IndyMac is $349,703.99. My monthly payment is $2,330.93, with the same interest rate of 4.498% since our loan modification in 2008. I have a child who recently graduated from the University last year who is still looking for employment in this tough economy, another child who is still attending college and 2 other children still in High School who would be going to college within 2 years when the "modification agreement" expires or resets in 2011. By that time, I will be financially supporting 3 college students and I know I won't be able to afford my monthly payments when the "modification" resets. My question is: Are there any other options to lower my principal? By the time my "modification" resets, would it be possible to readjust or modify the loan to fixed 30 or 35 years loan in order to lower my monthly payments to cope up with the financial crisis? Thanks in advance for your advice!

07-25-2009, 01:39 PM	#2 (permalink)
LadyRN Member Join Date: Feb 2008 Location: Northern CA Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Modification Readjustment I am assuming there are no other options? Any thoughts from this forum?

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