Indymac 1st & 2nd Reverse Amoritization

[Joel Fraser]

Hello!This is my 1st post. I have a unique situation and am not sure how to proceed. I purchased my home in April 06 (purchase price $865,000). I am still in my original loan which is a 1st ($637,500) and 2nd ($127,500) from Indymac. I got into the negative motorization loan because:* I was a partner in a business and it looked like the business was going to produce much greater revenues in the next several years (as compared to the past couple). So my income would be much greater in the next several years.* My agent/broker/seller (all the same person) felt I should get in before prices got higher. Actually, they needed a buyer at this price so they could take out their equity and flip another house.* My agent/broker/seller guaranteed that I could refi in a year or two (through them) to a better loan (as the house was guaranteed to go up).I am getting close to the principal hitting 110% of the loan amount because of the housing situation (I live in Northern California), which takes my variable from current 6.828% to 30 year fixed at 8.75%. _The Situation:_ 1) My current outstanding loan balance is $823,250. The current market value of the home is $660,000. I am upside down $163,250 plus my down payment.2) My business didn't take off as planned so even at the current loan, paying interest only, I cannot make my current lower payments of $3,200 total for both my 1st and 2nd. I am currently behind 2 months.3) I am in the process of starting a new business and expect to be in a position to pay $5,500 a month for mortgage payments, once the business starts.4) I have had a past earning capacity of $200K plus so I am certain of #3. My business will be consulting to and selling to a target audience I have known and sold to for the last 15 years.5) I have been advised it may be better to just walk away as I may never re-coup the loss.6) If I did walk away (which I do not want to do), when my business takes off, I will need the write off the house does provide, even if I will be upside down for several years.7) I would like to work this out but realistically re-negotiate the loan to $660,000, 30 year fixed at 6.5%. I think both parties benefit from this solution.8) The problem is I won't be in a position to make the $5,500 payments until February 09. I can prove my ability to make payments once the business is launched as I will have 12 month commitments from my clients.9) I would like to negotiate that my payments that I am not making now gets added to the loan amount.10) I feel if someone looked into this loan and knowing that the agent/l/broker/seller are the same person (and there is definite question as to the appraisal that was done at the time), there may be some recourse there except for the fact this person is no longer in the country. I don't think I want to go that route either. Help? Do I have any hope of working this out with Indymac at what I have proposed? Thanks!