Holy moly!!!! Could this finally be my modification???

[DownNotOut]

I just checked my email this morning and found this from IndyMac Bank:

Dear XXXXXXXX,

You were recently mailed a very important loan modification offer. This modification will bring your loan current and lower your rate, giving you a more affordable payment each month.

This is a limited time offer so please watch your mailbox for a Priority Mail envelope from IndyMac Mortgage Services. Once you receive the packet, sign and return your modification documents before they expire on 10/24/2009. Packets not returned or postmarked after the expiration date may not be accepted and you may not be eligible to receive another offer.

The packet will outline all the required documentation you need to return to us to confirm your eligibility. Please refer to the packet for important details, terms and disclosures. Incomplete or missing documentation may delay or suspend the processing of your loan modification so please return all documentation we request.

If you have not received your packet or you have questions, call our customer service representatives at 1.888.873.0554. If you cannot afford this offer, other options may be available. These options may include a "short sale" (in which a payoff amount less than the full amount due is accepted) or a deed in lieu of foreclosure. Please call us today.

Sincerely,
Brandon Latman
First Vice President
IndyMac Mortgage Services

Please refer to the offer packet we sent you for important details, terms and disclosures.

I am shocked! I was planning on calling them today and harassing them some more because it has been 5 months so far. I guess I will check the mail instead. After the last couple of weeks of dealing with them, I was beginning to think I was never going to get a modification - I mean, they've really been jerking us around.

Well, I hope I'm not getting TOO excited!

[KKAB]

Whoa, alright! It's about time. Hopefully it works for you!

[DownNotOut]

Got the package on Monday. It is a "trial period plan" and it's actually a pretty good deal. They have reduced my payment from $2439 which included taxes and ins. plus escrow shortage to $1110 which includes nearly $400 toward escrow and escrow shortage. So in actuality, they lowered my payment from $1611 to $717. And they've lowered the escrow payment from $828 to $393.

I have to complete the the papers and send in more of the same documentation they already have and some new things and then make three timely trial payments of the $1110 amount. Even then, they say that we may not be given a permanent mod if the lender doesn't approve it. Anyway, it buys us three more months as they won't pursue any foreclosure while we are in the trial period.

The only thing I am wondering is...I've been through the paperwork three times and no where do they explain HOW they got the payment down. I don't know if they lowered the interest rate, extended the term or both. They also say they can't determine the amount of arrearage that will be added to the principal balance until after the trial period is over. So who knows how much that will be. BUT, they do say that if we fulfill the terms of the trial period, they will waive ALL (they wrote it just like that in all caps) unpaid late charges at the end of the trial period. I'm considering asking them to also remove the late payments from our credit report, just to see what they say!

I'll keep you updated on how things go!

[tkharvey]

I wish you luck! We weren't so lucky on our modification. I was shocked that we didnt' get it since we made our trial payments on time, etc. I know some people are getting their loans modified and hopefully, you're one of them! Good luck.

[poorold]

in my opinion, it's not a "modification", it is a deceptive collection effort.

first, how can they "lower" your escrow payment...after all, the insurance and tax bills are not going to be lower when they come due.

second, you say they didn't show how they lowered your payment. that's probably because they don't know themselves.

Look at it this way...take your full escrow amount and deduct it from your FAKE "trial payment."

How much is really being applied to your mortgage???


A friend of mine got a similar offer and she was excited that she might be able to keep her home...until I showed her the MATH and REALITY.

Instead of THROWING 3 MONTHS PAYMENTS AWAY, why don't you play the game against THEM.

I told my friend to forget sending them any more money and to call them in a couple of weeks and ask where the information package was they were supposed to send to her. If they told her she missed her payment, she was going to tell them she didn't know she had to make a payment until her package was approved.

If they gave her a hard time she would just apologize and ask them to start over. She figured she could keep that going for months because she would probably never get the same person on the phone twice.

And then just string them along LIKE THEY ARE STRINGING HER ALONG.

[DownNotOut]

in my opinion, it's not a "modification", it is a deceptive collection effort.

first, how can they "lower" your escrow payment...after all, the insurance and tax bills are not going to be lower when they come due.

They lowered my escrow payment by giving me 5 years to pay off the shortage instead of 5 months. The shortage amount in the the escrow of $393 is $66. That means my regular escrow is $327 which is about right considering our taxes are around $3600 and insurance is around $500. That's where the big difference in escrow payment came from.

As far as the rest of your post, I'm fully aware of how some people feel this is a big scam perpetrated by the mortgage companies. But, like I said, I've just bought myself at least three more months of living in this house and since I'm due to have a baby in December, it's a big relief knowing I won't have to get out before then and be unsettled.

[tkharvey]

You have at LEAST three more months of staying in your house. OUr trial payments were up in June. (We were denied). Here we are the fist of October and we're still here. And from what my attorney told me, we can expect to get a "Notice of Hearing" about thirty days prior to the hearing, then at the hearing we have up to 60 more days before the judge sets the sale date. So, from my understanding, once you get the "Notice of Hearing", you can count on at least 90 days. You'll be fine....enjoy the birth of your baby!

[tkharvey]

By the way, I"m from Jacksonville, too!!!!

[DownNotOut]

You have at LEAST three more months of staying in your house. OUr trial payments were up in June. (We were denied). Here we are the fist of October and we're still here. And from what my attorney told me, we can expect to get a "Notice of Hearing" about thirty days prior to the hearing, then at the hearing we have up to 60 more days before the judge sets the sale date. So, from my understanding, once you get the "Notice of Hearing", you can count on at least 90 days. You'll be fine....enjoy the birth of your baby!

Thanks, tk! We can't wait for this baby - we are so excited!

Waving "hi!" from Jacksonville!

[hereforinfo]

The only thing I am wondering is...I've been through the paperwork three times and no where do they explain HOW they got the payment down. I don't know if they lowered the interest rate, extended the term or both. I'll keep you updated on how things go!

The trial period payments are an arbitrary amount, just to give you some sort of relief while they work on the modification. During this time, they will capitalize your past due interest, figure out how much to reduce the rate, etc. to get your payment to 31% of your income. If you qualify for the mod, your payment will most likely be different than what your trial payment is.

[IBroke]

The only thing I am wondering is...I've been through the paperwork three times and no where do they explain HOW they got the payment down. I don't know if they lowered the interest rate, extended the term or both.

They used the "waterfall-method":

To get to the 31%, they will reduce your interest first, in 0.125 increments, down to as little as 2%. If that's not enough, they extend the loan term up to 40 years. If that's still not sufficient, they forbear principal (interest-free, UPB) which will become due at the end of of the loan or when the house is sold or refinanced - whatever occurs first.

The trial-payments are generally a bit higher than the modified payments - in our case it's about 10%. They want to make sure that you are capable of paying that amount. Having lower trial payments than your permanent modified payments wouldn't make much sense.