I have a first & second mortgage with Indymac. My first has been modified and my 2nd has not. I stopped paying about 4 months ago. I contacted them stating that I wanted to settle the 2nd since my house wasn't worth what I paid. At first they told me they were private investors & that they don't modify second mortgages. I was contacted by someone at Indymac about a month after that. I had to submit bank statements, a hardship letter and my BEST offer. Well, I owe $68K and offered 12%, which was $8,600. Not that I even have that money my parents were going to let me borrow it. I was declined today. No counter offer. The girl told me they will NOT foreclose and that my loan will NOT accrue any interest and eventually it will become a charge off. I know that they will still have the lien to my property, but I just don't understand why they wont accept an offer rather than receive nothing? She said down the road it will most likely get turned over to a collection agency and then I might be able to settle with them. She said that each month it will get reported to the credit bureaus that I haven't paid. Any advice? It's not like I have the money to pay the 2nd. I have been out of work since June 2008 and my unemployment will be running out any day now.