IndyMac Bank - Primary/Secondary Loans Florida House

[Joel Fraser]

First of all, I want to thank everyone in this forum. This has been a great source of information and hope! I am in a similar situation to other people on the forum. My only difference is that I'm probably 1-2 months away from the worst. it's like being on the path of a hurricane (can't help the reference, living in Miami), waiting for the eye to hit, and trying to take all precautions necessary, but if things don't work out, I will have to let go of the house. I currently have two loans with IndyMac. The loan structure is similar to what others have done to avoid putting down 10-20%. The secondary loan covered for the 20%. The primary loan is for $288,000, under a 2-yr ARM, interest only, that will become variable for the first time on November 08. I estimate that my interest payment will increase by $500-$600 if I'm not able to negotiate a loan modification before then. That is assuming the FED doesn't increase rates before then (I doubt given the mess they have created and thier inability to do anything productive!!). I knew of course about the ARM, but didn' have any idea about the new variable rate that was going to be used for the variable portion. I didn't do my homework when I signed the mortgage (the broker didn't help either; I don't know if this would be reason for suing!), but back in July of this year I realized that my new interest rate would be LIBOR 6-mnth plus 5%; yes, 5% on top of LIBOR; I kick myself for agreeing to this!! Although the interest are capped, the cap is around 10.5%. I called IndyMac for the first time in July of this year, and as others, the refinancing option is out of the table because the value of the house is 10-30% lower than the mortage amount (0 equity). Then, I called IndyMac again on Aug 15, and asked about their loan modification programs. The operator said to call back the first week of September. Reading from other postings in this forum, my guess is that IndyMac must have gotten authorization in the last week of august to start reviewing loan modification applications. I called back on sep 3. The operator asked for my address and sent me a couple of forms to fill out (Financial statement, Hardship Letter, bank statement, etc). I then realized that the package had been available on IndyMac's website for at least two weeks, so I didn't have to wait on the mail for it. For those of you looking to start, IndyMac's website is the place to start. I sent the loan modifcation package via fax to IndyMac last week. I emailed Philipp Muniz and Eric Friedman this morning, plus 3 other officers. I used the list provided by Cat in this forum. Now is wait and see. I forgot to mention that my situation is similar to others here in that, not only my interest payments will increase in a couple of months, but my income will decrease by more than 50% around the same time. I had to quit my job, and I will be self employed in November. I'm explaining all this to IndyMac in the hardship letter, but I'm sure I will have a lot of convincing to do, since I don't have any history of self-employment income. In adddition, my wife will be giving birth, and she will have to quit her job. I don't think there is much to do, but to follow uo very closely with Indymac. I would appreciate any feedback or comments from other in the forum. For now, wish me luck!!