Indymac Federal Bank has implemented a systematic loan modification program aimed at streamlining the process for delinquent borrowers to obtain affordable and sustainable monthly payments. Since the FDIC takeover, Indymac loan modification proposals have been sent out to thousands of borrowers and the lender will continue to reach out to at risk borrowers by mail.
Homeowners wishing to apply for an Indymac loan modification need to know the guidelines to improve their chance of approval. The basic criteria for the loan modification offers are:
- Lower payment to represent a total of 38% of gross income
- First mortgages only
- Interest rate reductions
- Further rate reductions for first 5 years, capped at 1% rate increases
- Longer loan terms
- Principle forebearance
- No cost to borrower-fees & penalties waived
Borrowers must provide financial statements and proof of their income to qualify for an Indymac loan modification. In order to meet the debt ratio requirement, borrowers need to add together the principle and interest payment, property taxes and insurance, and HOA ( if applicable) then divide that total by their gross monthly income to arrive at their debt ratio. The new, lower payment needs to be no more than 38% of the gross monthly income. Remember to include the taxes, insurance and HOA as well.
Borrowers will have to demonstrate a financial hardship to qualify for an Indymac loan modification. A hardship letter briefly outlining the circumstances surrounding the delinquency and what steps have been taken or you are prepared to take to overcome your financial situation. A well written, brief and compelling hardship letter will provide your lender with a clear picture of your circumstances and good intentions.
Indymac loan modification principal forebearance could involve deferring some of the loans balance for up to 10 years, with the new loan payment calculated on a lower loan amount reflecting 90% of the homes current market value.
Borrowers who have received a proposed Indymac loan modification offer should take the time to make sure their paperwork is completed properly, including calculating their debt ratio, to have a better chance of acceptance. A family budget meeting, where all income and expenses can be discussed and modified accordingly can be beneficial to meet the debt ratio guidelines and demonstrate a willingness to the bank of commitment to the new loan modification.
Borrowers who are delinquent or who are experiencing financial hardship and falling behind on their Indymac mortgage can call 1-800-781-7399 to speak with a customer service representative. It is important for borrowers to have a complete understanding of the Indymac loan modification process before submitting any paperwork. Informed and prepared homeowners will have an increased chance of getting the Indymac loan modification help they need and deserve.
You can get the help you need to understand the Indymac loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.
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