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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (142074)	8/20/2008 2:56:30 PM
From: pecos_bill	Read Replies (1) \| Respond to of 306849

If this keeps up, I don't think we will be speaking Obama :)

To: DebtBomb who wrote (142074)	8/20/2008 3:06:32 PM
From: Les H	Respond to of 306849

FDIC Implements Loan Modification Program for Distressed IndyMac Mortgage Loans Loss-mitigation plan to yield loans that are affordable for troubled borrowers and sustainable over the long term, achieving a higher return for the FDIC fdic.gov How will you determine which loans receive modification proposals first? IndyMac Federal is focusing on mortgages that are now seriously delinquent or in default in order to prevent further losses on those mortgages and to avoid unnecessary and costly foreclosures. Borrowers who have not been contacted by IndyMac Federal with a modification offer, but who are experiencing financial hardship and are falling behind on their mortgage payments should contact the bank to inquire whether they may be eligible for a loan modification that could help them keep their home. What modification options will be available to borrowers? Under the IndyMac Federal program, eligible mortgages would be modified into sustainable mortgages permanently capped at the current Freddie Mac survey rate for conforming mortgages (now about 6.5%). Modifications would be designed to achieve sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance. To reach this metric for affordable payments, modifications could adopt a combination of interest rate reductions, extended amortization, and principal forbearance. If, consistent with maximizing the net present value of the mortgage, an interest rate reduction below the current Freddie Mac survey rate is necessary to achieve a 38% DTI, then IndyMac Federal could reduce the rate further for five years. After five years, the interest rate would increase by no more than 1% per year until it capped at the Freddie Mac survey rate where it would remain for the balance of the loan term. Other modification features could be combined with an interest rate reduction, as necessary and consistent with maximizing the value of the mortgage, to achieve sustainable payments. It is important to remember that there are no fees or other charges for this modification. All unpaid late charges will be waived.