IndyMac Modified Loan On 1st Mortgage But Not 2nd?

by Maria
(Riverside, CA)

Indy Mac modified my 1st mortgage interest rate to 2% for five years, late last year. I recently received a letter from Indy Mac regarding my 2nd mortgage. They had asked about my monthly financial obligations to see what options they can offer me.

After going through my monthly financial obligations, Indy Mac told me they could not modify my 2nd mortgage at this time and can only offer a repayment plan.

Do I have other options with the 2nd loan?

I am approximately $7000.00 behind on my 2nd mortgage and my monthly bills are in exact amount of my income (no more and no less.)

Mortgage Loan Modification Answer:

by Loan Modification Expert - Dan North

If IndyMac modified your 1st mortgage under the Making Home Affordable Modification Program your interest rate is 2% for 5 years then increases 1%/year until it reaches a cap that is about 5% right now and will remain there for the life of the loan.

If that is the case then IndyMac is required to modify your 2nd loan under the Second Lien Program (2MP) to an interest rate of 1% on an amortizing loan and 2% on an interest only loan for 5 years after which the interest rate will increase 1%/year until it reaches the interest rate set by the 1st mortgage loan modification.

If the modification on the 1st mortgage is a forbearance only (2% interest for 5 years then back to old loan) this is not a Making Home Affordable Loan Modification.

Twist IndyMac's Arm Until They Squeal

Write IndyMac And Officially Request The Following:

Ask if you were considered for the Making Home Affordable Loan Modification Program on your 1st and 2nd mortgage.

(Specifically say) If not, this is an official request that both your 1st and 2nd mortgages be considered for HAMP under the Making Home Affordable Program

Ask if the your modification on your 1st is a HAMP modification

Ask for the specific reason that your 2nd was declined for the Second Lien Program

If your 1st mortgage modification was HAMP then your 2nd is automatically modified under 2MP and please send the loan modification agreement as soon as possible

Tell them that a repayment plan is un-acceptable and would force a bankruptcy to have the 2nd lien stripped from the property to avoid foreclosure

End off the letter to please reconsider a MHA Modifications on both your 1st and 2nd mortgages, that you would rather pay off both mortgages if possible instead of going the bankruptcy route.

You have several options depending on what your situation is. If your 1st mortgage was a HAMP modification you can force the 2MP modification on the 2nd using the Escalation Process to enforce the guidelines.

If the first is not a HAMP modification you can offer to strip the 2nd from the property by bankruptcy (they will get nothing then) to see if they will deal.

You can always go the bankruptcy route if they do give you a repayment plan as they intend to foreclose if they go that route. It would be much better to just get IndyMac to make a modification you can afford.