Loan Modification Cap

[stacyg27]

Does anyone know how to get around the $729k cap for modification? Our loan exceeds the cap by $10k and Indymac had declined our application on this stipulation.

Stacy

[darkdays]

Was your original loan over $729 or is the principal owed now over $729 b/c of missed payments, late fees, etc. House is single family?
HAMP is explicit that is one of the general eligibility criteria. Has to be owner occupied, risk of default, loan under $729 for single family house.

[stacyg27]

The original loan was 739K, 5 year arm, interest only loan. Have you heard of anyone paying down the note to get under the cap? We are currently 2 payments behind.

[darkdays]

Originally Posted by stacyg27

The original loan was 739K, 5 year arm, interest only loan. Have you heard of anyone paying down the note to get under the cap? We are currently 2 payments behind.

Your payments in the vicinity of let's say $6000? You would have to come up with about $22k because the first monies would go towards 2 late payments, then $10K towards reducing principal. If you had $22K lying around we would not be having this discussion. Did you ask Indymac if they have an in-house mod that is not HAMP and wouldn't have to follow that guideline?

[lennox]

I'm guessing, since your loan is interest only, it is set to recast in the next year or so, and your payment could increase dramatically. Maybe Indy will work with you to lower and lock the interest rate on an in-house modification. But if you're only paying interest now, and they add in principal...even extending the loan to 40 years, my guess is, it wouldn't lower the payments too much. But at least you wouldn't have to worry about the recast coming up.

[MyHAMP]

Originally Posted by lennox

I'm guessing, since your loan is interest only, it is set to recast in the next year or so, and your payment could increase dramatically. Maybe Indy will work with you to lower and lock the interest rate on an in-house modification. But if you're only paying interest now, and they add in principal...even extending the loan to 40 years, my guess is, it wouldn't lower the payments too much. But at least you wouldn't have to worry about the recast coming up.

Hmm, leaves the option of a loan with a balloon-payment...

[stacyg27]

Originally Posted by lennox

I'm guessing, since your loan is interest only, it is set to recast in the next year or so, and your payment could increase dramatically. Maybe Indy will work with you to lower and lock the interest rate on an in-house modification. But if you're only paying interest now, and they add in principal...even extending the loan to 40 years, my guess is, it wouldn't lower the payments too much. But at least you wouldn't have to worry about the recast coming up.

Thanks, You are correct, the loan will begin to float in Oct, 2009 which I would to avoid.

I will ask Indymac...

Has any one heard of Indymac doing a in-house loan modification 739k?

[stacyg27]

question?...I have notice that if you have more that 1 unit the 729k cap increases. I have a property that is also financed by Indymac. Under the HAMP guidelines 2 units would raise the cap to 939k which would exceed what I owe on both properties.
Does anyone have any knowlege of this process?

[flagirl4444]

Originally Posted by stacyg27

question?...I have notice that if you have more that 1 unit the 729k cap increases. I have a property that is also financed by Indymac. Under the HAMP guidelines 2 units would raise the cap to 939k which would exceed what I owe on both properties.
Does anyone have any knowlege of this process?

2 units means two attached homes on one property, like a duplex. Not 2 separate single family properties.

[stacyg27]

Spoke with Indymac They rejected my request for loan mod. exceeding the HAMP $729,500.00 cap.
I was told the if I send them the difference between what my loan amount is 739k and the cap amount of $729,500.00 approx. 10k along another update application for a loan modification.
She said that they would resubmit the package, however she wanted me to understand that getting did not mean I would be approved for a loan modification.
Don't know if I can trust them or not?

[darkdays]

Originally Posted by stacyg27

Spoke with Indymac They rejected my request for loan mod. exceeding the HAMP $729,500.00 cap.
I was told the if I send them the difference between what my loan amount is 739k and the cap amount of $729,500.00 approx. 10k along another update application for a loan modification.
She said that they would resubmit the package, however she wanted me to understand that getting did not mean I would be approved for a loan modification.
Don't know if I can trust them or not?

$10K PLUS the 2 payments you are already behind because there is no way they are going to take the $10K and apply it to principal. Then you won't be 2 months behind and you are not in default or in imminent possibility of default. Put your request for an in-house mod in writing.

[stacyg27]

thank you darkdays. did you get approval for your mod?

[darkdays]

Originally Posted by stacyg27

thank you darkdays. did you get approval for your mod?

No, I have not been approved. I have had a long journey with Indymac which will end one way or another soon. I would keeping fighting for an in-house mod. good luck!

[stacyg27]

Originally Posted by darkdays

No, I have not been approved. I have had a long journey with Indymac which will end one way or another soon. I would keeping fighting for an in-house mod. good luck!

We move meet with an attorney last Friday. Hired him, based upon all that we have read. I don't know if we will successful, but I feel better. I just recieved a copy of the letter from my attorney to Indymac requesting in writing a loan modification as well as 29 addition items. I think it would be easier to provide the loan mod. that supply the 29 items.

Sorry to hear about the continuing screw up with the 5k...putting u through the ringer. Can't wait tell we get government run health plan