Indy Mac Home Loan?
Hello pros, My parents purchased a home in 2004. Their monthly mortgage payments were $2400 per month, at the time were very affordable, my father was the bread maker.
My parents divorced in 2005 and my mother was left with the house and mortgage payments. My mother has a low paying job, and had to refinanced to lower her mortgage payments to $1,300. Throughout 2006 she refinanced again, because she had an ARM loan and jumped to close to $2,800. So her payments were $1,500 in a INTERESTS ONLY LOAN.
Until today 2008, she owes more than what the house is owed and valued at, by Sept 2009 she will need to pay approx. $3,800 per month, she works two jobs, and can barely afford her $1,800 mortgage. I've heard about the loss of Mitigation office & considering
She has never been late with her mortgage payments, and her credit score is close to 700, she has two loans out for this ONE home, currently under pre-penalty until Sept 09, no equity in the home. What can be done or be smart to do?
- FRANKLv 51 decade agoFavorite Answer
FHA has new program for hardship cases. It may also be possible do a modification of current mortgage, With no equity in the home, the last thing lender wants to do it to foreclose.
- 1 decade ago
I'm sorry to hear about your moms difficulties. Unfortunately, she is not alone. I have never seen the problems that are being faced by so many people (in 20 years in the business).
The very first thing you should do is contact the lender. Indy Mac is one of the biggest and will have procedures to deal with this. Your mom should speak very frankly to them about her problems and the inevitablity of losing the home when the rate adjusts. She should speak to them about MODIFYING her loan. They have the power to lower the payments for a set time, lock her in at a lower fixed rate, and even lower the amount owed on the home.
I am licensed in FHA and am a mortgage consultant but I would suggest going this route first. You mom may even consider using a company that specializes in Loan Modification to take the case. It will cost $1,000 ot $2,000 but many have a money back guarantee of performance.
Whatever you do - DO NOT make the mistake of doing NOTHING. You can do it!
- Big daddyLv 51 decade ago
I agree with Frank on this, you need to attack this in two ways. One, find an honest, reputible mortgage broker that works with FHA, they should have access to the new program Frank mentioned, it will not hurt to get it run through to see what can be done. Also, call the current lender and see what can be worked out. The banks, while they don't want to lose money, they really don't want any more foreclosures on their hands either. They should be willing to work something out. You do have some time here, but your mom shouldn't work this hard either. If neither approach works, consider a short sale to at least save mom's credit for the future, good luckSource(s): mortgage broker