Indymac Loan Modification Received Today

[beachymama]

I received a loan mod agreement from Indymac via the mail today. I have not made any payments on this loan since Nov 2007 and they have not filed any foreclosure action yet.

Their offer on my neg am loan (originated in 2004 for $188K) reduces my interest rate to 3% for 5 years and it will eventually rise to a max of 6.125%. They are upping my principal loan balance from $196,539 to $207,155 (which they say is $11,615 of arrears). They are also adding a balloon payment of $100,000 due on 6-1-2034 and a $4855.10 deferment balloon due on 6-1-2034.

Yikes! I have sent them several short sale offers which they have not replied to for $130K, $150K and $170K, all of the buyers have walked. It is listed for $199K, original appraisal by Chase in 2005 (when I got the HELOC) was $416,500.

I have a 2nd lien HELOC with Chase on this home which was charged off this summer (that is for $150K).

I am going to have to pass on this loan mod. I do not live in this home anymore. I have another home loan with Indymac for the home I am living in and I am hoping I get a better loan modification than this one I received today.

Has anyone heard of Indymac foregiving the arrearages or the neg am increases totally?

This loan mod just keeps me stuck with a home that will be impossible to sell in the future becuase I will continue to owe more than it is worth!

[Safford]

How did you qualify for a new loan/new home when this one was so far past due? That is amazing.

Is the $100K balloon in addition to the $200K principal balance?

Is the 3% rate P&I, interest only, or still neg am?

If you accept the mod, does that preclude the potential of a short sale later?

Is the property currently rented? At 3% could you get a positive cash-flow? If so, would 3-5 years of positive cash flow and the potential for a modest increase in value by then offset the difference between the loan balance and sales price?

Sorry for all the questions, I am working toward modding 5 propeties and am trying to learn everything I can.

Thanks

[beachymama]

How did you qualify for a new loan/new home when this one was so far past due? That is amazing.

I don't know, I have been working with a rep from HopeNow to do a deed in lieu when this modification came in the mail today. It was unsolicited.

Is the $100K balloon in addition to the $200K principal balance?

I believe so. It shows 60 payments at 3%; 12 payments at 4%; 12 payments at 5%; 12 payments at 6% and 208 payments at 6.125%. Then it says: One additional balloon payment of $100,432.09 due 6-1-2034 for your loan to be paid in full and one additional payment of $4855.10 (your deferred principal balance) is due 6-1-2034 for your loan to be paid in full.

Is the 3% rate P&I, interest only, or still neg am?

It says that my monthly principal and interest payment of $773.38, so I think that it is P & I. It does not include taxes and insurance which is not escrowed.

If you accept the mod, does that preclude the potential of a short sale later?

It says nothing about short sale. It does say that I may not file for bankruptcy between the date of this offer and the completion of the loan modification process.

Is the property currently rented? No

At 3% could you get a positive cash-flow? I would break even possibly after taxes & insurance. If so, would 3-5 years of positive cash flow and the potential for a modest increase in value by then offset the difference between the loan balance and sales price? Possibly, this was something I would consider if they did not add all these balloon payments to the end, but I am thinking that I am going to have to file bankruptcy and just lose the house in foreclosure instead.

Sorry for all the questions, I am working toward modding 5 propeties and am trying to learn everything I can.

Thanks

[Safford]

Thanks for taking the time to respond, that was real helpful.

These things are so hard, there doesn't seem to be black and white answers.

Good luck

[FlyOnTheWall]

Yes, thanks for posting the info - congrats! (I think, lol)

One quick question - what month was your last contact with Indy?

[beachymama]

In September they were calling me daily (for the home I live in which is also past due as of my July 2008 payment). I gave them my financial info over the phone. At that time they told me that I had too much debt to qualify for a modification. I have also been working with the Hope Now contact but he pretty much disappeared in September too.

[beachymama]

Is the $100K balloon in addition to the $200K principal balance?

I believe so. It shows 60 payments at 3%; 12 payments at 4%; 12 payments at 5%; 12 payments at 6% and 208 payments at 6.125%. Then it says: One additional balloon payment of $100,432.09 due 6-1-2034 for your loan to be paid in full and one additional payment of $4855.10 (your deferred principal balance) is due 6-1-2034 for your loan to be paid in full.

I re-read the mod agreement and it says that the monthly payments will cover $101867.91 of the principal loan amount and that the $100,432 balloon payment will cover the additional principal due. So I was incorrect, it is NOT in addition to the new loan amount of $207,000.

Just wanted to clear that up.

[beachymama]

Oh, and the name of my mod is called:

HomeSaver Loan Mod PI + IO Fixed + ARM Step 30-40 Split Conv Two Balloons (Not Recordable) for FIDC 082508 (2).doc #67

this is according to the bottom of the modification agreement.

[Joeyseven]

Originally Posted by beachymama

I received a loan mod agreement from Indymac via the mail today. I have not made any payments on this loan since Nov 2007 and they have not filed any foreclosure action yet.

Their offer on my neg am loan (originated in 2004 for $188K) reduces my interest rate to 3% for 5 years and it will eventually rise to a max of 6.125%. They are upping my principal loan balance from $196,539 to $207,155 (which they say is $11,615 of arrears). They are also adding a balloon payment of $100,000 due on 6-1-2034 and a $4855.10 deferment balloon due on 6-1-2034.

Yikes! I have sent them several short sale offers which they have not replied to for $130K, $150K and $170K, all of the buyers have walked. It is listed for $199K, original appraisal by Chase in 2005 (when I got the HELOC) was $416,500.

I have a 2nd lien HELOC with Chase on this home which was charged off this summer (that is for $150K).

I am going to have to pass on this loan mod. I do not live in this home anymore. I have another home loan with Indymac for the home I am living in and I am hoping I get a better loan modification than this one I received today.

Has anyone heard of Indymac foregiving the arrearages or the neg am increases totally?

This loan mod just keeps me stuck with a home that will be impossible to sell in the future becuase I will continue to owe more than it is worth!

Sounds alot like my story with my mortgage with Indymac.
So your not alone.
I also havn't made a payment since 11-07.I was approved for a short sale back in May or June,had a offer on the table for over 2 MONTHS.
nothing from Indymac on the offer,the buyers finally walked last week.
And I think I'm going to take if off the market.

And wait for them to make a move.

Stay in the home and rent it out for as long as you can. With a 3% interest rate, youd be crazy not to keep it....