Indymac Forbearance

[GrandKeeper]

Unemployed with a credit score in the 750s, but finding mtg payments overwhelming. Selling car to stay afloat. We are now negotiating some kind of 3 - 4 month forbearance. What I really need is a Loan Mod, but that's another story. Concerning forbearance - what do I need to watch out for in the app, and how much of a hit will my credit take. Without a job, refi is not an option. Any help would be appreciated. Thanks

[Moe Bedard]

Hi GrandKeeper,

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

You may want to check with IndyMac that it won't report as late payments on your credit...........if it is a special forbearance what they could do is to add the missed payments back into the principle.
While going through the forbearance if you do get employment, then you may be able to roll that forbearance into applying for a modification.

IndyMac Default Risk Mgmnt.
1-877-908-4357

[GrandKeeper]

Thanks for your reply, ***
The loan I have is a reverse amoritization. A) Pay PI, B) pay I only, or C) a portion of the interest while the balance is tacked onto the backend. Needless to say I am choosing option C. Which begs the question of how much they can tack onto the backend if housing values contine their steep decline. Evenually the gap will grow unmanagable. Nobody knows the value of their house since nothing has sold in the area. Yesterday Indy asked how much I can afford p/m. I offered a couple hundred. My feeling is partial payments is more credit worthy than late payments or no payments at all. What do you think?

[Moe Bedard]

We can not advise on whether or not to make payments............you do need to check with them on whether or not a partial payment will be returned though. The servicers normally either return them or post them to a suspense account but the collection effort does continue.........so please do check.

[GrandKeeper]

Below is ver***e from the app. Begins March for 3 months. Since my unemployment situation continues, I'm inclined to take their offer, kill my credit, and persue a LM in 3 months. Your thoughts?
Thank you for giving us the opportunity to assist you with your loan. The investor has agreed to assist you by extending the Forbearance Plan outlined below. Providing the terms of the agreement are met and your financial situation shows affordability to service your debts, the investor will re-evaluate your financial situation in order to review a loan modification with the delinquent payments owing. (Note: additional, current financial information and proof of income will be required at the time)

All funds paid under this agreement will be credited to the amounts due on your loan with out prejudice to IndyMac Bank’s foreclosure proceedings.

[Moe Bedard]

If it helps give you some breathing room while you pursue a job, it would seem that without the income to cover expenses, for right now this is what is being given......... you would then need to go back after the forbearance and give financials for a modification.