Indymac/ Citimortgage ARM- Suggestions?

[cmoney45]

Hello There,

I currently have an 80/20 loan which originated on 12/13/2005. The total loan amount on my house when purchased $359,900. I recently received a letter from my local accessor stating that my property value had decreased to a value of $287,000. This is great new in terms of my property taxes, but not good for the value of my house. When I check sources such as Zillow, it shows my house value is $241,000 in the current market. My current mortgage is $2057.00 per month, not including taxes.

First Loan 5 Yr. ARM (Indymac):
Indymac- $287,920
Interest Rate- 6.375%
Conventional ARM
Maturity Date- 2036
Next Scheduled Interest change- 2/01/2011

Second Loan 15 yr Fixed (CitiMortgage):
Citimortgage- $71,980
Interest Rate- 8.0%
Maturity Date- 01/01/2021

My questions are as follows:

1. What could be done in terms of a loan modification since one loan is an adjustable rate and the other is a fixed?

2. Should I start looking into a loan modification now? If so, where is a good place to start?

3. I don't want to wait until right before my rates changes to start worrying about this issue. Suggestions?

4. Has anyone had similar experience with modifying a loan as described above?

5. Currently we are comfortable with the mortgage and taxes however I do not feel it makes financial sense to be paying a mortgage in which the value has decreased significantly.

Any help anyone may have would be greatly appreciated. By the way, I live in the Inland Empire, more specifically, San Bernardino. If anyone needs additional information to access my scenario, please let me know.

Thanks.

C-

[schwefls]

Hi cmoney45:

Welcome to our forum. I wnated to stop in and say hello. Someone will be reaching out to you to address your questions. In the interim please hang in there.

[cmoney45]

Hello there....

Is there any one out there that would be willing to respond to my thread?

Any help is greatly appreciated.

C-

[Moe Bedard]

Hi C,

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

A good place to start would be to write a hardship letter..........click on the link for examples of letters and hardships that the lenders look for.......
Examples of a Hardship Letter

The modifications given are up to the investor on the loan....so you will have to see what they will offer.... modifications are treated like an emergency room.............the ones that are in the foreclosure and default stages are going to get the attention first................so you would need to call and see what options are available from the investors on your loan and if you can get the process started............

As far as any principle reductions.............we have not seen any on the firsts.........but the investors have been doing some on seconds........so that might be your best option for anything like that.........



IndyMac Loss Mitigation
1-866-355-7323


CitiMortgage Loss Mitigation for Loan Safe Members

Email address:
homeownerhelp@citi.com

1-866-255-3901


Please keep us posted on your progress............

[Moe Bedard]

already answered here in your original thread.........