Indymac - 2nd mortgage "pooled"??

[ChrissyF1214]

I had my first mortgage modified from 6.5% to 4.25% reducing the payment to approx. $250, not great but at least it was something. I have been out of work like many others since 6/2008.
My 2nd mortgage through Indymac I want modified since it is at 8.875% & we are struggling to come up with this payment. I asked them to modify & I was denied. The reason being is that "my loan is part of a private securitization they service & it has been "pooled" w/other similar mortgages & that it could be owned by several or an individual investor & traded at any time." What does this exactly mean? Why wont they help us? I was told by the rep we could do a short sale which I thought he was crazy to suggest since we pay the 1st mortgage every month & the house isn't worth the $430K we bought it for so the 2nd mortgage wouldn't even get paid off. Plus I don't want to give up my home. My cousin stopped paying (I think she has BOA) and they made her a settlement of $10K for her 90K mortgage.
What are my options with this letter that I received from them?

[imlars]

Originally Posted by ChrissyF1214

I had my first mortgage modified from 6.5% to 4.25% reducing the payment to approx. $250, not great but at least it was something. I have been out of work like many others since 6/2008.
My 2nd mortgage through Indymac I want modified since it is at 8.875% & we are struggling to come up with this payment. I asked them to modify & I was denied. The reason being is that "my loan is part of a private securitization they service & it has been "pooled" w/other similar mortgages & that it could be owned by several or an individual investor & traded at any time." What does this exactly mean? Why wont they help us? I was told by the rep we could do a short sale which I thought he was crazy to suggest since we pay the 1st mortgage every month & the house isn't worth the $430K we bought it for so the 2nd mortgage wouldn't even get paid off. Plus I don't want to give up my home. My cousin stopped paying (I think she has BOA) and they made her a settlement of $10K for her 90K mortgage.
What are my options with this letter that I received from them?

You could stop paying it too. After 4-6 months of non-payment the loan will charge off. At that point it will be sold off to a collection agency for cents on the dollar and they will contact you to make a payment arrangement. Once it is with the collection agency it is no longer accruing interest and they often will settle for much less than the original amount owed.

[BadBobMo]

After 4-6 months of non-payment the loan will charge off.

Yes should write off but who's writing the rules and accounting laws=Timmy/Our Girl Sheila!
It's been almost a year for my non-payment, Chrissy you need to read-up and look at BK-13 to strip the 2nd, if you are unsecured on your 2nd you might be able to strip it down.

[flagirl4444]

Keep in mind that if you settle for less than you owe, you may have to pay income tax on the difference. This depends on many variables, so it's best to discuss it with a CPA before you proceed.

[pamelabe]

I was told the exact same thing only my loss mit guy said "You investor does not allow the pool of loans that yours is in to be modified in any way shape or form. You happened to be in a pool of loans in which we can not modify. This investor has approx 11 of these pools and it has to do with credit backed securities in which this group of loans was purchased which does not allow us to modify." I dont know what this means and no one can explain it. Not even the loss mit servicer did. My 1st is with IMB for 8.675% and they have denied me for mod since Feb 09. I am working with NACA and an attorney to decide ultimately what to do. Good luck. I will post if I find out anything.

[ChrissyF1214]

My 2nd mortgage is a mortgage I took out an 80/20, so I would think it would be considered secure, right? This wasn't a equity loan.

Pamelabe please keep me informed. I think I need to speak to a lawyer as well. It's so unfair these mortgage companies are jerking us around and wont help us homeowners. I don't understand.

As for BK I have been thinking about it. I know my credit is ruined anyway I just never imagined I would file. I had such great credit up until a year ago.

[yomann]

Originally Posted by ChrissyF1214

............ As for BK I have been thinking about it. I know my credit is ruined anyway I just never imagined I would file. I had such great credit up until a year ago.

Once your credit is in the toilet (as mine is), BK does not look bad at all.
You can wipe out unsecured debt for pennies on the dollar, if that, and make a fresh start. JMO.
My BK paperwork is almost completed, and I will be going down that road this month.

[ChrissyF1214]

With the BK would I still be able to keep my leased car until the end of the lease? I know that probably sounds dumb to ask, but I have an infant & toddler & need a car right now. I don't have extra money to buy another car right now & would want to keep it. Also once you file bankruptcy I know employers can run your credit which I am not too concerned about, what I worry about is that everyone will find out which I would like to keep quiet.

Is it published in the paper under legal notices when you file? Once you see the lawyer do you stop paying your bills then? It would be such a weight off my shoulders and I would have some extra cash. I wouldn't be living paycheck (my husbands) to paycheck praying that something doesn't break or that we might need something because the extra cash isn't there. Do you know if it would affect my husbands credit? All of the credit card bills are in MY name only.

He doesn't use the cards at all. Approximately how much does it cost to file? I'm sure all lawyers & states are different, but just an idea. I live in NY. Thanks for any information you can provide.

[detleffish]

Chrissy - If you file Chapter 13 your husband will be included. Your credit will be ruined for about a year or two. At least in my state they put it on the internet so anyone can Google you. I wish they would stop that. We just filed chapter 13 to stop Indymac from taking our home. I stopped paying them after I filed for a modification - I tried to make the payments but I found I was backfilling with credit cards - and I knew I had to try to get a mod. Well Indymac would not budge.. I've put below about the new bankruptcy law that went into effect May 2009 (anyone please correct me it I am wrong about the effective date)....this may help - my lawyer charged me a set fee to process our chapter 13.

H.R. 200, on the other hand, puts that sling and stones back into David’s hands. If it becomes law, then lendors will be forced to calculate what terms they will end up with if the homeowner goes into bankruptcy and thus, it will make them more prone to negotiate terms to allow the homeowner to avoid bankruptcy. H.R. 200 would allow a home loan to be modified in substantial ways: 1) adjustable rate interest can be frozen during the repayment plan, 2) adjustable interest rates can be converted to a fixed rate, 3) the length of the loan can be extended by a number of years, and most importantly 4) allow for the secured part of the loan to be repaid while loan amounts over the value of the home are stripped down (treated as unsecured debts). One other substantial benefit to this legislation is Section 5 which limits fees and charges that can accumulate on the loan during bankruptcy.

I refer to the fourth item from Section 4 as “most important” because it directly impacts situations where the principal balance on loans secured by the house is greater than the value of the house itself. In days long past, one rarely saw this kind of “upside down” debt because lendors would not extend credit beyond the value of the home and home values generally rose each year. More recently, lendors loaned beyond the value of the homes and many home values have subsided. Without H.R. 200, a person entering Chapter 13 with a home valued at $100k but debt secured on that home of $125k would have to repay $125k. With H.R. 200 as law, he or she would only have to repay $100k and the remaining $25k would be treated as unsecured debt and potentially discharged at the end of the Chapter 13 plan.

[detleffish]

The Helping Families Save Their Homes Act of 2009 (H.R. 1106 or S. 896) is a recently enacted public law in the United States. On May 20, 2009, the Senate bill was signed into law by President Barack Obama. The stated purpose of the act, a product of the 111th United States Congress, was to allow bankruptcy judges to modify mortgages on primary residences, among other purposes; however, that provision was dropped in the Senate and is not included in the version that was eventually signed into law. In addition, the bill amends the Hope for Homeowners Program as well as provide additional provisions to help borrowers avoid foreclosure. Struggling homeowners that are in need of help should contact a HUD (Housing and Urban Development) certified housing counselor in your area by going to the HUD website. [1]. HUD certified housing counselors provide their services for free. Borrowers should be wary of any organization that charges a fee to modify their loan because they are often predatory companies that charge for their services but do not provide results.

[detleffish]

The final bill summary is here - without the cram down provision - DARN

S. 896 - Summary: Helping Families Save Their Homes Act of 2009 (GovTrack.us)