 IndyMac (new and improved) Modification offer
I was just given a conditional offer to modify my loan from 7.5% to 4.5% that will adjust to 5.125% in year 5 on a $924K loan. Payment would be $4728 PI. Sounds pretty good on the surface - but the payments are still about $1200 more than we can afford realistically because of other related debts and property taxes and HOA dues. If they were to allow an interest-only payment, we would be okay.
They list a range of income necessary in the offer to qualify for the mod and we are about $400 below the lowest number. Also, using the 38% max mortage debt to income ratio, we should be paying about $4150 PI because of the taxes and insurance.
A HUD housing counselor told me that the first offer is often the best offer lately and I should seriously consider accepting the offer if we can live with it. I am waiting to hear back from Loss Mitigation to see how they arrived at my offer. I was told also that they are limited by a margin (off Libor?) relative to the interest rate. Problem is that if I push too hard, I am afraid that they may not approve me because of our net income and expenses.
The good new is that they still own the loan. Also, the loan amount is about $300K over market value. - But I was also told by the counselor that I should not assume that they do not want to keep the house.
My question is does anyone have any insight as to how to approach this with them? I mentioned a silent second and they said they don't do them. A graduated payment plan might work also. (Start at 3% adjust to 4% and then 5%). I even offered to fly to Texas to meet with them...
thanks very much.
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