Jumbo loan modification question

[IndyMad]

I have an IndyMac Jumbo loan, and have been corresponding with them since October 08. As my cash flow has been negative up until recently breaking even, I have fallen 4 months behind with IndyMac. Over the past 9 months I have submitted paperwork, hardship letter, and photos that show the landslide that took a significant part of the backyard away. Possibly I have been too candid with them, as they were most hopeful in October and told me I qualifed, and I would get the paperwork in about 3 to 4 weeks. After weeks of delays, because the bank was being sold, I was told the new investors did not want to make any modifications, as they did not want to take any losses it was rejected. I have twoice resubmitted my paperwork, have received one rejection, and told that it is still under review, but I should submit more paystubs, etc. I have also received notices that they are preparing to foreclose, and I should contact them. Hmm, I have been for 10 months. I have begun to look at options of chapter 13, or 7. It seems that since I have more secured debt than allowed for #13 ( $1,010,000), I should look at #7. As I have lived in my house for over 15 years, I really don't want to give it up. In reading more about the limits on loan modifications, since my loan is $975,000 plus some back payments, I may have missed the point, that no one is making Jumbo loan modifications? Has anyone had any luck with IndyMac since April 09, and with any Jumbo loan modifications with any lender?

[TNT101]

Originally Posted by IndyMad

I have an IndyMac Jumbo loan, and have been corresponding with them since October 08. As my cash flow has been negative up until recently breaking even, I have fallen 4 months behind with IndyMac. Over the past 9 months I have submitted paperwork, hardship letter, and photos that show the landslide that took a significant part of the backyard away. Possibly I have been too candid with them, as they were most hopeful in October and told me I qualifed, and I would get the paperwork in about 3 to 4 weeks. After weeks of delays, because the bank was being sold, I was told the new investors did not want to make any modifications, as they did not want to take any losses it was rejected. I have twoice resubmitted my paperwork, have received one rejection, and told that it is still under review, but I should submit more paystubs, etc. I have also received notices that they are preparing to foreclose, and I should contact them. Hmm, I have been for 10 months. I have begun to look at options of chapter 13, or 7. It seems that since I have more secured debt than allowed for #13 ( $1,010,000), I should look at #7. As I have lived in my house for over 15 years, I really don't want to give it up. In reading more about the limits on loan modifications, since my loan is $975,000 plus some back payments, I may have missed the point, that no one is making Jumbo loan modifications? Has anyone had any luck with IndyMac since April 09, and with any Jumbo loan modifications with any lender?

IndyMad,

Just a quick note that I have a Wachovia Jumbo. Owed $900K + $70 Interest deferred (refi about 3 years old) and $8K non payment for 3 months. After about 8 weeks after I stopped payment and had called and started the paper work for the loan modification 3 weeks later (30 days past due). They came back with a loan modification, Intererst only payment at 4.5% then added about $200 more per month payment (still interest only) each year for 5 more years. Then in year 6 they asked for higher interest rate and the principle; this payment jumped $1,000 more per month. That is on top of the $1,000 jump over the last 5 years. And the DTI for year 1 was just under 38%. So, by year 6 I would be way over 60%. So, you guessed it.

Hey, this is the same old @#@!!! they passed off in the last loan, just called it a pick-a-pay loan and it was variable interest rate. They just fixed the rate year-over-year to increase even better for the bank than the variable rate; this time there is no risk. And they know I can't pay for the loan so they will be back at the foreclosure business again but this time (6 years from now) there will not be an Obama ballout plan pressured on the banks. I will be the sucker that will have lost the house in year 6 and the bank hopes the house is worth more. Current reduced loan for the mortgage modification is at $892K and I have a second at $100K so I am under water by about $100K with no hopes of paying any principle down over 6 years. So 1st mortage will likely come away without much loss. What a deal for Wachovia. They get paid on a toxic loan and still repo the home this time the loan is not toxic in 6 years.

So watch out for what you get from the mortgage modification. They will not offer you something you want. It will be what they want. Jumbo loans will get some modified but the bank will look out for themselves not you. You will have to fight them with a lawyer and it will cost you some to get a better deal, they won't do it if there is no pain for not making a good modification on your behalf.

Keep fighting with the benefit of a forensic audit conducted on your mortgage handling (from day one to current payment handling) up to date. Send to the bank your request for all the history of your account from closing to now. Moe's e-book has an example letter for what to write. Get the documents audited by a great attorney and then go after them with this information or the threat of a court suit if you do not get a fair mortgage modification.

Good hunting for stupid errors on your mortgage that will get you what you want and deserve.

TNT101

[IndyMad]

Update as of 8/31. Spoke to OneWest, now own IndyMac loans. As of 8/11 they have stopped doing any loan modifications on loans over the $729,500 loan balance. So no jumbo loan mods will be entertained. So if they have managed to string you along for about 10 months, with promises that you are approved, paperwork will arrive in 3-4 weeks, or you qualify, be very skeptical. The deal they seem to have cut with the Feds, is OneWest takes the first 20% of the losses, the Fed's have backed up the next $10Billion in losses. There is also the rumor that OneWest has taken out insurance on their potential losses. So if they force you into BK, then their insurance kicks in and the additional loss over the 20% is covered by the Feds. In this somewhat twisted world, it seems that they have more incentive to force you into BK, as they do not lose anything ( but maybe insurance premiums). They will loose up to the first 20% if they go ahead and actually modify your loan, reduce you payments or principal etc, but will loose little if they force you into BK.
Interesting report as of August 19th, they announced $182Million in earnings for the past quarter. Since the investors only put up about $1.3Billion, they just got about 15% back in the past 3 months, while some of us are looking at BK or short sales or who knows?

Not the best news but I do think that for loans under the $729,500 they will have to keep the appearance of working with the homeowners so the Feds don't look too closely at this sweetheart deal.

Best of luck to you all. I am consulting an attorney, about options.

[serrdrew]

Indymad,

I'm in the same boat as you are in. I have a Jumbo loan and they kept telling me they would modify it. Now they tell me they are not modifying any loan over $729K. WTF??? Have you had any luck with an attorney?

Serrdrew

[TNT101]

Originally Posted by serrdrew

Indymad,

I'm in the same boat as you are in. I have a Jumbo loan and they kept telling me they would modify it. Now they tell me they are not modifying any loan over $729K. WTF??? Have you had any luck with an attorney?

Serrdrew

Serrdrew,

I was given a MAP loan modification on a Jumbo loan. But I had to be late on payments to get any action on a Jumbo $900K loan. I stopped payments in June and was offered a loan modification. So Wachovia was doing these loan modifications. Did you get an interview over the phone for income and expenses as well as the hardship case? This was done within a two weeks after I called and asked for the Loss Mitigation Department to handle the loan modification request. They will not do anything in LM department unless you are more than 30 days overdue on your payment. They will send you back to collections department.

So unless you were talking to Loss Mitigation with more than 30 days late they will tell you your loan does not qualify. It is not true but that is what they will say as long as you are not over 30 days late. Once I got the Loss Mitigation department on the phone and they saw I was 30 days late then they set up the phone interview( they looked this up while I waited on the phone). I also sent to them by e-mail my income and expense form filled out, tax returns, 3 months of bank statements, etc that are required in addition to the phone interview.

Then it took about 2-3 weeks to get a confirmation that an underwritter was going to offer a loan modification. I called every week. I had only 10 days to make a decision once the documents were on line for me to review and print out.

So keep fighting to get a MAP modification. The HAMP guidelines state loans over $729K do not qualify based on the Federal program guidelines. So if Wachovia follows this then you will be denied a HAMP loan. So keep fighting now for a loan modification now. I have new modified payment statements with the principle reduction and the new fixed rate for the first year. So they do make these Jumbo loan modifications at Wachovia. I confirmed with several people in Wachovia that taking the MAP loan modification would not prevent Wachovia from giving me a HAMP loan modication once they offer this to non Fannie and Freddie backed loans.

TNT101

[IndyMad]

Thank you for the encouragement. I am not giving up but think that IndyMac is the poster child for how to make money and screw everyone who is not a billionaire, during this downturn. Nice they are making 15% a qtr, that is 60% a year off of the forecloures and fees. I think the FDIC should be getting a lot of calls and emails about these folks. That is the one place they seem to be vulnerable. If the FDIC chairwoman, or her assistant Michael Krimminger, whose job is to monitor the behavior of all of the banks that have taken Gov't bailout funds.

I will see if I can find an address and post that later. I do think Wacovia and Wells are somewhat better, but have a friend having trouble with Wells due to a 20% pay reduction and no second income in the family.

I called the loan broker who put into this loan and they are checking around to see what they can find out, but one thing that seems to be consistent, is that the more persistent you are the more likely you are to succeeding in getting the mod. But it also seems true that they must think it is in their best interest to do the mod, rather than what might be good for the homeowner. Sad but true.
Also Barney Frank congressman from MA, has said that maybe they will go back to allowing judges in BK do a cram down on the loan amounts and terms. Just don't hold your breath in that coming before next year or summer. But his office would be a good one to call as well.

I am thinking about responding and trying to prepare my best defense. These folks told me that I was going to recieve payment terms, what I got was notice of sale and demand for $52K in payments, fees, interest and a couple grand for the forclosure company.

Nice working with them. But I will not give up easily.

Good luck
IndyMad

[IndyMad]

One more thing, talk about SPIN Doctors: IndyMac/OneWest mad a big deal about the August 11 announcement that they were expanding to cover more home owners. If you look carefully at the article, it makes you think they are expanding to cover all homeowners when in fact they have now a stated policy they the will not even consider a jumbo loan. What BS these folks are putting out. Here is a headline:
OneWest Bank Expands Participation in the Obama Administration’s Home Affordable Modification Program

Here is the link if it helps: OneWest Bank Expands Participation in the Obama Administration?s Home Affordable Modification Program

I am not really sure they have modified 14,000 loans since February, plus the 3500 they claim but they really are dealing in bad faith, and what qualifies as a modification, lowering the payment $50/month then jacking up the rate in the outer years. More importantly might be how many homes have they foreclosed on before and after the sale, and how many of the loan mods were actually accepted and implemented. I smell a rat, maybe a bunch of them. Just really makes me mad.

IndyMad yet again.

[Monika001]

I have $1,900,000 Super Jumbo loan with Indymac. My construction loan was rolled into a permanent loan few months ago, I suppose to pay principal and interest now, I paid interest only in a construction phase. They don't want to talk with me regarding my request to pay interest only for a few years until my business(real estate broker) comes back. I had to rent my brand new home, moved in to a friend home but I am still not able to cover my mortgage payment. I need to talk or write my situation with someone other with a costumer service rep. If Indymac will foreclose on me they will loose at least $700,000.
This is how much my home value went down!
If they would give me an interest only payment for 2-5 years, I would be able to keep the house.

Any suggestion????????? anyone knows the address or the name of the department I should send a letter about this?

thank you

[stacyg27]

Spoke with Indymac They rejected my request for loan mod. exceeding the HAMP $729,500.00 cap.
I was told the if I send them the difference between what my loan amount is 739k and the cap amount of $729,500.00 approx. 10k along another update application for a loan modification.
She said that they would resubmit the package, however she wanted me to understand that getting did not mean I would be approved for a loan modification.
Don't know if I can trust them or not?