Stuck w/ bad load product from equity share failure/scam

[GunDog]

So we've been in our house for almost a year now and are still making the payments on-time. The story starts a year ago when we unfortunately got into an equity share agreement w/ GMAC mortgage in Orange County. $1800/mo payments for 3 bed-3bath house for 2 years...no down payment, just had to qualify for load w/ partner company (affiliate w/ GMAC mortage in Mission Viejo). Turns out the partner inflated our income (stated-income loan due to our excellent credit) to minimize their down-payment. Partner made payments for 2 months then was late 1 month, then stopped paying...long story short is the house is 100% ours, we have the deed, partner has released all claims to house in writing, and only our name is recorded on all loans/docs/etc.

Problem is we now have been making a $3600/mo payment on a 10-year 7% interest-only loan through IndyMac (yeah, my luck). Terms of loan state refinance before 3 years is a 6 month interest penalty. Have talked to IndyMac Federal recently about modification, and they've said they can't do anything for us unless we stop making payments.

Both my wife and I have excellent credit and good savings from a previous home sale, but she is currently staying home with our 2-year old instead of working so our income is app. $100k year and the mortgage is currently $558K. Can't qualify by ourselves to refinance (plus penalty) unless we get stated income option again I would think...have options for family members to co-sign for boost in income, but we've also got the problem of lost home value...house sold for $620K, current comparables are $520K.

Any suggestions or should we find daycare and get our income up enough to refinance into a better product (+ get a second to cover loss of home value)?

Thanks in advance and I'm sorry if this is rehashing several other threads as I've just joined and trying to read everyone elses similar/better/worse situations.

[Dan Bailey]

Welcome to the forum Gundog!
***, Moe, or Andrew will be by soon to answer your specific questions. Good luck with your process and don't lose hope!

[Moe Bedard]

Hi GunDog,


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

With IndyMac you do not have to be in default to apply for a modifcation.............you just need to get to the right dept to try for one............

Contact this person directly
Eric Friedman
SVP, Loss Prevention
Default Risk Management
Phone: 1-512-250-2776
Fax: 1-626-432-8802

and also put your hardship letter into the body of an email along with your loan number and contact info and send it to each of the email addresses below...................this should help get you started with the proper contacts........

frank.sillman@imb.com
drew.buccino@imb.com
eric.friedman@imb.com
mitch.oringer@imb.com



Also this is info on the new FHA program that will begin on October 1st..........we won't, however, know just how many lenders are going to accept the short payoffs............but if you meet these requirements, this might also be an option for you...........

hope this helps............
Please keep us posted on your progress.............

FACT SHEET: FHA TO PROVIDE ADDITIONAL MORTGAGE ASSISTANCE TO STRUGGLING HOMEOWNERS