Indymac Loan Mod running Circles. Need help

[dmhoot]

This site is great. A lot of very good information that has been beneficial so far. Here’s my story/runaround with Indymac so far, I’ll try to make as short as possible, but it’s been ongoing since april of 2008.

Starting off with my current loan in AZ with Indymac, I have a 10 year I/O loan for $392000. I/O payment with taxes ~$2685. Property is worth about ~$200000-$220000.

1st Attempt with Indymac:
I started calling Indymac in april because I saw the writing on the wall’s of me being late on my payments(was not late on payments yet). Hardship due to loss 12% loss in pay, wife not being able to work due to my 3 small children at home, increase in property taxes, economy, etc…. Faxed financial paperwork back to Indymac end of April. May 20th, 08 got a letter from bank saying they have received my paperwork and to allow 30days.
Fast forward to 8/14/08(3month later), after many phone calls to Indymac asking about the delay, they did not even show a loan mod in process. They would escalate it and for me to call back Monday. Oddly enough, I received same letter/financial package I received in April to start this off. I called in on Monday and they said “you don’t qualify”. That was it, no letter of denial or nothing or reasons.

2nd attempt.
In October I decided to hire a company featured on ABC news to work on my Loan mod with lender. Checked them out thru Better business bureau and they rate a BB. They gave me free consultation and had my paperwork reviewed by a legal team. (3rd party company). Said I was pre-approved and lender is willing to do a loan mod. Paid them (with a Credit card in case of any future disputes). Authorized the 3rd party to speak on my behalf with lender. November’s mortgage Payment missed due to not enough funds to pay whole payment and of course, Indymac can’t accept a partial payment. December comes around and I ask the 3rd party company I hired what documents they will be uploading to lender and I need to know what they will be sending them so I know. They said all the doc’s I gave them (tax returns/bank stat’s/w2’s, etc..) and a excel sheet showing my income/debt. I got the excel sheet and was not impressed. (looked like it took about 2 minutes to put together). Finally they upload doc’s to Indymac ~dec 15th. Have not made November or December’s payment yet.
Dec 19th in the morning I get a knock on door and note to call lender. I ask the guy what it’s about and if he’s from the bank. He said he was not from the bank, from Fidelity and for me to call the number. I email/call the 3rd party company I hired to see if I was to call the bank or if this is something they need to do. No response from them. (Normally I get a email within a hour). I decided to call the Indymac number from the note in the afternoon.(the loss mitigation department 1-877-908-4357) Indymac asked me to verify my financial information, which I already had updated on their website. Put me on hold for 5 minutes and said I had been qualified based off of verbal income for a conditional forbearance plan of ~$1800 while my file was reviewed and I had to pay that within 10 days and then again on jan 29th. I paid right away over the phone because I had that money from not paying November’s payment. (kept the partial payment amount I had) They said I would be getting a packet in the mail to fill out(4506t,bank statements,paystubs) within 5-10 days of forbearance payment. And that the investor like’s to see the forbearance payments to make sure you can pay.
I sent multiple emails and phone call’s to the company I hired to see what’s going on. Finally, 12/31/08(13days later, minus a few for holiday) I get a phone call from the 3rd party company saying that they see I setup a forbearance payment with bank and if indymac asked for any additional information.

1/5/06 I finally get a hold of the 3rd party and tell them Indymac requested some doc’s. They said they would call lender the next day, 1/6/06.

1/10/09. I get a denial letter in the mail from Indymac dated 01/05/09. Said my loan request was denied based off of one or more of 7 items listed. I still never received the package to fill out and send to them. I call the loss mitigation number and they said my loan mod was denied. I asked what the reason was. Indymac said any of the reason’s listed on the denial letter. Just that it was denied based off of investor’s guidelines. I then asked for their short sale paperwork to be mailed to be.

1/10/09. About 20 minutes later I decided to call Indymac back again and ask if they ever got any paperwork for me. The 1st thing they said was if I was calling to make the 2nd forbearance payment for a active modification in process. I said I just got a denial letter, but you showing it active? Put me on hold and then came back and asked me what the date of the letter was and if that’s the only one I got. I said yes, only one and dated 1/5/09. On hold again and comes back saying it’s a denial from a previous application from 12/19, but shows a pending application. I then asked if they received any of my financial information and they said no. I asked how can I be denied if I never received the paperwork to send in to be reviewed and your showing it was never mailed out. At this point I know for sure they don’t know what’s going on. I tried to explain this multiple times and if he could send me the packet. He said he would have to input my financials again, ask for another conditional payment within 10 days and then the packet would be sent out. I said how do I know I won’t be on the phone again in another 15days in the same situation. I’ll be doing conditional payment’s just to get paperwork from you? I ended up just saying thanks for the time and I’ll call back in a few days.

Any suggestion’s on how to move forward with this? Should I email 3-5 rep’s at Indymac for escalation as noted in previous threads on this forum? Seems like Indymac still does’nt know if the left hand is talking to the right hand. I could have called back 3 more times and gotten 3 more different answers. I would like to stay in the house, but if they don’t work with me, then I’m going to have to try to short sale it. I’m meeting with realtor this week to discuss options. (~$150K under is a lot) And the 3rd party I hired is about to get fired since I’m pretty much doing all the work in my opinion. What do you all think????

[dmhoot]

Another thought I had is when i gave my Financial's over the phone, he said to just take my paycheck amount and multiple by 2 for gross/net. (paid every 2 weeks). I said that my w2's show more than that due to some bonus's I get but are not really guarenteded, so I did the paycheck multiplied by 2.

But If i give them my 2007 W2 amount divided by 12 i'm wondering if that would help make a approval???? I'm thinking from the when i called them they would make me do another forberance payment based off the new financial info.

[Moe Bedard]

dmhoot,


Welcome to the forum and thank you for joining................


The problem that you are most likely running into with the lack of communication and the totally different answers is because IndyMac is in the process of being sold............while this is happening they are most likely not going to be pulling loans out the investor pools to be modified until it is wrapped up which should be soon............the FDIC is said to be continuing with the modification template that they have started once the sale is complete. At this point all that you can do is to try to stay in touch with the loss mitigation dept. for updates at least twice a week.

[dmhoot]

Thanks ***. Indymac seems to be not very well oraginized. I will keep updates comming as I get them. I talked with the 3rd party I hired today and they see the same thing going on with Indymac. Indymac seem's to change things daily. They are esclating the issues up to Indymac's hier management. But I agree with what your saying, their just stalling while Indymac's purchase is finalized.

From what i've read though, indymac has only been doing interest rate reductions/extending terms. I'll keep on them.

[Moe Bedard]

that is basically all we are seeing any investor give for a modification so far are the rate reductions and term extensions to make the payment more affordable.

[dmhoot]

I've been thinking about my orginal refininace to get this $392k loan in 2006 since I know a lot of lending issues was going on around that time frame. I was wondering if I was even qualifed for the loan. A 10year interest only seemed a little odd to me at 1st but the broker said that was all i could qualify for. So I went back to my refi paperwork and noticed on the paperwork my monthly income of $7000. I then checked my W2's Gross from 2005 and Tax return gross and it does not equal $7000 per month when I divide by 12 for the year. ~$5800. Am I wasting my time looking at this or if it's somthing i could possibly use if it was a bad refinace from the beginning? I can not remember if i did a no-doc refi or not. Is their anyway of finding that out? or am i just wasting my time on this one? My 2007's gross for the year /12 does not meet the $7000 amount that was on the loan paperwork.

[Moe Bedard]

At the closing you would have signed a copy of the application which would have the figure on it........so in order to see the one from closing you would have to do a QWR (Qualified Written Request) for the loan documents from the closing. But the beauty of a refi is that you have three days to rescind that loan if you change your mind and think that you are not going to be able to afford it....which is not available on a purchase.

Qualified Written Request | Home Mortgage | Protect Your Home & Mortgage With Loan Safe

[dmhoot]

Thanks *** for the reply.

Update A long uphill battle may finally come to a close for me.
I received a phone call today from Indymac saying I was approved and they will be fedexing my paperwork with the term's and condition's of the permanent loan modificaiton. Should receive within 3-5 days. I have to accept by the end of Jan and also make my 2nd conditional forberance payment by the 29th. I will update info when i get them.

[dmhoot]

Received Loan Mod packet in mail. They are offering me P&I 4% for next 5 years, then 5% for year 6 and then years 7 on 5.123%. Keeping my orginal maturity date on loan as well. Adding my missed payments back into the loan. We have to be within a range of gross income stated on the offer letter, which we are. Wife and I deceided it was good for us and we overnighted packet back for Indymac's final approval. A orginal 7% Intrest only Loan to a fixed P & I loan capped at 5.123%. I know that the house is still valued way less than our loan amount, but in our situation, the loan amount includes our orginal sales price on home and the re-fi to pay other bills. I don't beleive it's indymac's fault for the housing values that decreased. Keeping finger's crossed were approved. I think it's a great offer. Will update again.

[Moe Bedard]

That is a great mod offer! I hope you are approved too!


Please update us when you hear..........


Good Luck!

[PMJeff]

Is Indymac only doing loan mods if you are behind in your payments? Is there anyone that has had a loan modification done for a loan that is not in default? I faxed paperwork over several weeks ago and when I call to follow up all I am told is that someone will contact me and there is not an extension I can be transferred to. Has IndyMac been sold ? Maybe things will get better soon.. Looking for help.

[horions59]

I'm glad that someone can get IndyMac to do something. I have run into a brick wall with them.

On one hand they tell me I need to be at least 30 days late for them to talk to me. But at 60 days late I believe they are required to report this to the credit agencies which can hit your fico HARD.

Five letters and several phone calls and I all get back is a letter stating that I do not qualify for a loan modification.

[angel83]

Yes, the conflicting answers are so annoying and frustrating. I have been given different reasons as well.

[Moe Bedard]

the IndyMac sale is expected to close late Jan. early Feb. and the continuation of the streamlined loan modification program introduced at IndyMac by the FDIC in late August will be a condition for the FDIC to provide any type of loss-sharing on IndyMac's assets.

[angel83]

I'm not impressed so far with their response. More must be done.

[ponderosa]

I planned on calling Indymac on the morrow but it sounds like best waiting until sale is done. Also once you have decided to go for loan mod it appears you need to be at least 30 days late or more before action can take, so does it matter to them that your credit rating is failing rapidly, or is your financial current picture more important. Have they ever commented as to what priorites are on getting mods?

[dmhoot]

Regarding credit scores, I know in my case Indymac reported 30day's late. I saw it on my report ~7-10 days later on my credit. My average score before was about 750, now my score is average of 660. I would estimate around 100 drop in score. I use credit monitoring thru one of the 3 credit report people to watch my scores and activity.

I'm making my 2nd conditional payment this week, while I'm waiting for my approval. The one thing with Indymac I learned is you have to be on top of them constantly. Beleive me, I know it's frustrating, but sometimes the old saying still works. "squeaky wheel get's the oil". Keep pressing them for help