Indy Mac Bank Loan Modification, Part II

[Mike]

First need to say thanks for this site. I have been working (?) with Indy Mac for months and I thought I was in this all alone. Lots of great information I could have used when I started this process of saving my American dream. Little background, I reified in June of 05, in May of 06 lost my job. I did not find employment but until August 07. Tapped all resources and was behind 4 months when I became employed. With new job I am not at the same compensation. So every month I an in the negative. Outstanding principal on loan is $191,830. I am arrears of $7,243.86(interest and escrow) So started down this road with Indy Mac Bank. Lots of ups and downs but I would like to fast forward to the issue at hand. In early April, Indy Mac Loss mitigation called and said that they propose a "agreement to modify” my loan. The details are Modification fee of $500.00 plus Escrow shortage $875.65. My new monthly payment would be an increase of 60.60 a month to $1446.25. So I pushed back calling in question their logic that if I was going negative at current payment, how was I to now fulfill this new payment. Yesterday I get package from Indy Mac "Home Saver' department. They are offering a product called Fannie Mae 5 year Rate Reduction. This plan takes past due interest and past due escrow items and rolls them into a new principal amount. They take my current rate of 5.750% and reduce to 3.750% for 5 years. My new payment (first 5 years) would be $1066.47. A reduction of $309.18. Also the maturity date on the note will be extended by 10 years. At the 5 year mark they will determine new monthly payments based unpaid principal owed, at the original interest (5.750%) and the new maturity date. SO, I am looking for outside perspective. Has anyone else gone down this path? In 5 years, lots of factors could change economy, job, and housing market. Hope I gave details that make sense. Thanks in advance for feedback