Indymac trial modification, should I accept it? Pls Help!

[Flormaria]

I got a modification from Indymac (OWB) - and I have to respond on ten days, this is what I have:
Originally I got my house on 2007 for $ 415, 000 40 Years, 8.5% but I was behind for more than a year, and I did a modification.

Current Balance: $ 462,000
PPal (includes Taxes) $ 2,670
interest 3.5 %
years 40 years

This is what they offer me: According to Indymac I did not qualify for HAMP but they offered me an in house modification,
Current Balance: $ 325,000
PPal (includes Taxes and Insurance) $ 2,320
interest 5%
years 40 years

Pls let me know what you think-I also want to do bankruptcy- but I am not sure if do it now or after the trial.
Thanks Much!

[Evan Bedard]

This is what they offer me: According to Indymac I did not qualify for HAMP but they offered me an in house modification,
Current Balance: $ 325,000
PPal (includes Taxes and Insurance) $ 2,320
interest 5%
years 40 years

These are the terms they are offering and you currently at a 3.5% interest rate?

[Flormaria]

yes My interest went up from 3.5% to 5%

[Evan Bedard]

Well it sounds like there may be a balloon at the end of the term and that is why the balance is lower. But if the payment is affordable I would go ahead and accept the trial payments so you can permanently lower the payment. If you are gonna take the offer I would hold off on filing bk until after the trial period as it should only last about 3-5 months, whereas a year ago it could easily be 6-8 before they made a decision.

[Flormaria]

thank you Evan I always read your posts!
what are the probabilities that this will be a permanent modification?

[Evan Bedard]

thank you Evan I always read your posts!
what are the probabilities that this will be a permanent modification?

No problem Flormaria, the possibility of you being approved is actually quite good as servicers are doing a good job making you you meet all eligibility requirements before offering the trial period. Just make sure you make all payments on time and I personally would not stop making the trial payments until a final decision has been made.

[Flormaria]

Evan Thanks a lot.! If I save my House its becuase of this Forum and people like you. I had been reading it for the last six months and has been a great experience!
Gracias

[Evan Bedard]

Thank you so much for the kind words Flormaria! I and others here will do all we can to help you the best way possible throughout the process.

[Flormaria]

Hello Evan, Freddie Mac is requesting my old employers copy of my past taxes for years 2006-2007? is this correct? why they are doing this?
Thanks Much!

[Evan Bedard]

Hello Evan, Freddie Mac is requesting my old employers copy of my past taxes for years 2006-2007? is this correct? why they are doing this?

No they should only need your most recent two years tax return for the modification, have you provided that already?

[Flormaria]

Hey Evan,

I provided them with my taxes returns from pervious years - but yesterday my old employer who gave me a bust with some financial documents to meet the requirements to buy my house got a letter from Freddie Mac, stating that they need Supporting information - I don't know what to do.

[Evan Bedard]

but yesterday my old employer who gave me a bust with some financial documents to meet the requirements to buy my house got a letter from Freddie Mac, stating that they need Supporting information

Wait why would your employer get a letter from Freddie Mac?

[Flormaria]

Evan, I have copy of teh paper from Freddie Mac- Quality Control, they are post closing audit for me, and requesting verification of employment, gross earnings, etc. Why?

[Evan Bedard]

Evan, I have copy of teh paper from Freddie Mac- Quality Control, they are post closing audit for me, and requesting verification of employment, gross earnings, etc. Why?

I'm not too sure why, if you received a loan modification they should already have copies of your paystubs, bank statements, tax returns, etc.. You have already provided this information correct?

[Flormaria]

yes, this information was provided it.
Now they, (Freddie Mac) are requesting verification of employment for years 2007- 2008 from my old employer? As I told you before, at that time my old employer made up all financial information. We did not keep copies of anything and that is what they are requesting. in the headletter they wrote QUALITY CONTROL and they also wrote post closing audit. So maybe is an entity separate from Freddie Mac but hired to audit me?

[Evan Bedard]

yes, this information was provided it.
Now they, (Freddie Mac) are requesting verification of employment for years 2007- 2008 from my old employer? As I told you before, at that time my old employer made up all financial information. We did not keep copies of anything and that is what they are requesting. in the headletter they wrote QUALITY CONTROL and they also wrote post closing audit. So maybe is an entity separate from Freddie Mac but hired to audit me?

This just makes no sense to me as they should only need 2009-2011 tax returns at the most.. Have you tried contacting your Indymac or Freddie Mac to see why they are now requesting this information?

[Flormaria]

Evan, I haven't contact them because this document was sent to my old employer (its confidential) so,how I am supossed to tell them that i know.IDK what to do?

[Evan Bedard]

Evan, I haven't contact them because this document was sent to my old employer (its confidential) so,how I am supossed to tell them that i know.IDK what to do?

Oh wow, I have no idea why they would be sending this information to your old employer.. How do they know who your previous employer is? Was this the company you were employed by when you obtained your mortgage?

[Flormaria]

yes, that is the company of a friend (old Employer) who helped me out with some financial information in order to get my mortgage, otherwise, i wouldn't have a roof now. what happened if these entries (income) weren't reported to the IRS?

[Evan Bedard]

yes, that is the company of a friend (old Employer) who helped me out with some financial information in order to get my mortgage, otherwise, i wouldn't have a roof now. what happened if these entries (income) weren't reported to the IRS?

I'm honestly not too sure why they are requesting this and they may be trying to verify the legitimacy of your previous employment.. Did your friend (old employer) respond to Freddie Mac's request?

[Flormaria]

He haven't answered yet. waiting for me to let him know what values to enter. I am to scared. But i have old pay stubs from his "company" that I can use

[Cat Damiano]

Hi Flormaria,


What is happening here is that your loan is being audited by Freddie Mac Quality Control most likely while going through the modification verification process there may have been a random flag placed on the file prompting an audit.

As a result of this process they will be going through and re-verifying everything in your original loan documents from the purchase. From what you have stated in your post, that you "boosted your income", and that " at that time my old employer made up all financial information" the audit will most likely uncover that the information given to purchase the property was not truthful, and why they are asking your previous employer to provide the proof of income as well as asking the IRS to provide the tax returns for those years.


For post-closing quality control reviews:

Lenders must re-verify all employment, income and sources of funds used in the original underwriting process, based on the minimum documentation required at the time of origination. Copies of the original verifications should be submitted to the issuers with a request that they confirm the accuracy of the documentation.

Lenders must obtain the Internal Revenue Service (IRS) income information using Form 4506-T (or an alternate form acceptable to the IRS that collects comparable information) for each mortgage selected for quality control review.

[Flormaria]

Thanks much! Cat Damiano.
It seems like we are going to lost our home! I feel very sad

[Cat Damiano]

Why, are they not allowing you to accept the Trial Modification at this time? I posted to let you know exactly what the process entails that Freddie Mac is doing because you had asked why they were asking for the information from your previous employer.

[Flormaria]

I am accepting the trial - but If they are revewing my loan with original documents including the Income that my FRIEND Boost up, I'll have a problem, because i never filed out that information with IRS. I sincerely diont know what to do. I was fighthing for this house months, days with out sleeping, stress, OMG its very sad

[Cat Damiano]

If they are allowing you to accept the trial plan while they are performing the audit, then you may want to do that if the payment is affordable and you are able to handle it. If you are unable to furnish the information that they are requesting for the audit, that is a different situation that you will have to ask them about what will happen.

[Flormaria]

My payments are affordable and I just accepted it. At least i have three months more to live. Let's see what happens... but thank you for all your help, You guys are great!

[Cat Damiano]

Good Luck, I do hope that you can figure something out that they will accept so that you can continue to the permanent modification. Please keep us posted on how you are doing through the process.

[Flormaria]

i will keep you posted.

[Evan Bedard]

Cat has excellent advice, keep moving forward with the trial period and just make sure you make all payments on time until a final decision has been made.

[Flormaria]

Cat and Evan,
1) What would happen to my friend and me if he doesn't want to return the information they requested? is this mandatory?
2) Also, When I filed out for the first time to get the loan, I signed a document called "anti-predatory lending disclosure" where I marked down, that I applied for a home loan where my lender has not verified my income or assets, or where these were not disclosed on my loan application" My question is if this can help me.
3) I have a family behind this, and i really need your support, pls let me know what to do? I am very confused. back to my stressful nights...

[Cat Damiano]

I honestly do not know what the outcome would be if your friend doesn't return what they are asking for. If the information being requested was not included in your original loan application, then you may want to let them know this before the deadline.

[Cat Damiano]

Hi Flormaria,


Do you have any updates? Did you go ahead and accept and start the trial modification? Have you heard anything more from the audit?

[Flormaria]

hello,
i just made my first payment of the Trial modification. Naca Event Dream is in New York THIS WEEKEND, what would be the benefit IF I assist to the event while I am on the TRIAL modification?
2) American Express sued me and won, i haven't made payments for about 6-8 months, I ignored papers of court.. and now they dont only sued me, but they are getting 10% of my wages, they froze my bank account ( but I got money back from court) and they have a lien on my house. I cant do BK until i get approved x modifiation..pls tell me what to do? i cant afford to pay $400 monthly!!!
I offered them to pay 25% of the debt but they did not accept it.
shame on me for not finding this Forum before!!

[Cat Damiano]

We would not be able to help you on something that has already happened. You ignored the court papers and they sued you which they had every right to do. You should always address official court documents not ignore them. If you do go to the NACA event, they should be able to look over your information and see what you should do about the trial payments versus going through them for the modification if you are eligible through NACA.

[Flormaria]

Hi cat / Evan
I got my Final modification yesterday but no idea if i should accept it or no...
This is what they put in Naca:

Servicer Proposal Information
Type:	- Other	Term:
PITI:	2,314	PI:	1,549	Taxes:	665	Insurance:	100
HOA:	0	PMI:	0	Term:	480	Rate:	5.00%
Principal:	321,257	Value:
Delinquent Interest:	5,335	Late Fees:	0	Late Penalties:	0	Unpaid Escrows:	0
Mon Day Year # Months PI Rate Amortization 05 01 2012 1 2320 5 Full 6 1 2012 1 2320 5 Full 7 1 2012 1 2320 5 Full 8 1 2012 480 2314 5 Full
Servicer Comment: Please be advised that the agreement only referrs to P&I (principal and interest) but the TI (taxes and insurance are included in the modification. The 2nd page of the agreement explains the escrow and shortage spread.

[IMG]file:///C:\DOCUME~1\fgarcia\LOCALS~1\Temp\msohtmlclip1\01\ clip_image001.png[/IMG]
And this is what I got in the letter yesterday:
[IMG]file:///C:\DOCUME~1\fgarcia\LOCALS~1\Temp\msohtmlclip1\01\ clip_image003.png[/IMG]
My questions are:

1. If my house decreased in value why I still have to pay the full balance?
2. Can I enter the “deferred amount” in my coming bankruptcy? And after final mod when can I file out?
3. If I sell my house for the market price, what will happen for the rest of the money? because they put $ PPal balance is 458k and the market price is 225 k
4. Please note that in the website they have included Escrow and insurance but no in the letter-
5. Please help me I don’t have idea how to proceed-
6. Thanks much

[Cat Damiano]

If you want to keep the property, you really do not have much of a choice. The modification doesn't bring the property down to current value, it helps by making the payment more affordable.

[Flormaria]

I accepted Final Modification - I am very happy for this forum that has helped in my long journal. Ill be able to sleep -

[Cat Damiano]

Congratulations that is great news!