Indymac Loan Modification-How to Apply & Qualify Correctly

Posted by admin On January - 25 - 2010

Are you one of the thousands of homeowners stuck in an unaffordable Indymac mortgage? Wondering how you can apply for a federal stimulus loan modification plan that will lower your monthly payments? Curious if you even would qualify for a loan workout with your lender? Well, the truth is that not everyone will qualify, but you can definitely increase your chances of success if you know a few important reasons why some borrowers are approved, while others are denied. Read these tips before you contact Indymac about a loan modification.

The truth is that your lender will only offer you a loan modification if you can show them that it is in their best interest to do so. What does that mean? That if it is more cost effective to keep in the home than to foreclose and try to sell your home in this current market, they will be likely to give you a loan workout. Face it, banks don’t care about us personally, it’s all about making money, or more accurately-losing the least amount of money, given this current financial crisis.

Your job is to prove to Indymac in black and white that you can actually save them money by reducing

Know the 3 critical elements of a hardship letter

Know the 3 critical elements of a hardship letter

your interest rate, extending your loan term, and yes-even reducing your principal balance so you can afford to continue making payments. Lenders cannot have too many defaulted properties on their balance sheets, or they risk being declared insolvent. The solution is to offer the homeowner a loan modification-but only if they will lose less money than by taking your home back. Since a foreclosure process has a price tag of about $50,000, your lender also has to figure that into the cost analysis, often making that option very unattractive.

So let’s say you owe $250,000 on your home loan, but due to market depreciation, your home is now only worth $175,000. Indymac has to figure that if they foreclose and try to sell your home, they will lose at least $125,000-not very attractive, right? So if you put together a workable proposal whereby you agreed to continue making payments on the home, at a reduced interest rate and reducing some of that principal-that makes a whole lot more sense to your bank.  Lenders also get paid by the Treasury Department to modify loans using the HAMP guidelines.  This is a program funded by the stimulus plan and designed to help 4 million borrowers keep their homes.  This plan has standard guidelines for approval – so it makes sense to learn what it takes to qualify under the government plan and then prepare your application correctly.

Again, you must show all this to Indymac in black and white. How can you do that clearly and in a convincing manner? You must prepare your loan modification forms so that they demonstrate your inability to pay the current mortgage payment, verify the current property value has decreased significantly so that it is not cost effective to foreclose, and then prove to them that you will be able to afford to pay and maintain the new lower mortgage payment. If you know how to complete your loan modification application properly, you can build a very attractive loan workout proposal that you lender will likely accept. The difference between approval and denial? Knowledge and proper preparation of your loan modification application!

The federal loan modification plan has made it easier than ever for homeowners to work directly with their lender to find a loan workout solution.  Lenders are required to use that standard approval guidelines set forth by the Treasury Department.  You can learn and use the very same formula your lender will use when you complete your application forms.  That way you know ahead of time what areas of your budget might need adjusting and give yourself the inside edge to approval.  You must be able to figure your new payment-called a target payment, debt ratio and disposable income using the federal guidelines.  Sound confusing?  Don’t stress-you can use a software program designed just for homeowners that actually copies the same formula your bank will use.  Save hours of time – all you do is input your specific income and expenses and everything is figured for you.  See your debt ratio, target payment, new interest rate and more right away.  Avoid mistakes-do it right the first time for the best chance of approval.

Get the help you need to prepare your own accurate and acceptable Indymac loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit and order today.

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