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Old 03-24-2010, 07:03 PM
 
Location: Northern Virginia
258 posts, read 309,514 times
Reputation: 68
Default Experience with Indymac loan modifications?

My buyers ratified a short sale contract subject to lendor's approval.

Tonight the listing agent called to tell me that Indymac told him the short sale case was closed because his client had entered into loan modification with the lender. The listing agent pulled the property out of foreclosure and was moving forward, and his clients indicated that they had received numerous letters, etc. so they were convinced that this was a good deal for them.

Now, I'm not opposed to loan modification, but I have some questions based on any experience you've (all y'all) have had. Is Indymac likely to forgive the missing payments or are they likely to just roll it into another loan? Is the monthly payment likely to be reasonable? I've heard that many loan modifications are $150/mo. lower ... which isn't very reasonable in my locale.

I told the listing agent to wait few days, follow up with his client and we'll go from there.

Thanks for any input!
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Old 03-24-2010, 08:05 PM
 
Location: Columbia, SC
6,961 posts, read 10,634,824 times
Reputation: 3506
~2% of loans are actually modified. Find out if it's one of the temporary or trial loan mods, or if it's permanent. Being a gambling man, I'm going to say it's a trial 3 month loan mod.
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Old 03-25-2010, 07:34 PM
 
Location: Northern, VA
980 posts, read 1,996,890 times
Reputation: 519
I agree with Brandon. What I'm seeing is that the loan mods that are approved are typically for 6 months or less and the homeowner ends up right back where they started....stressing over a payment he/she can't afford. The difference in payments is usually so small that I don't know why people even accept them. From my experience, a loan mod is something like a "bookmark" in the book of foreclosure: the process starts, a loan mod is requested and approved, and foreclosure stops at that "page". If the owner misses a payment, the process continues from where it stopped at loan modification. I honestly can't figure out what the benefit is to doing it. I have a client in that situation right now and it's killing me that he thinks he's being helped. I have to sit on my hands not able to reach in and save him from the mess he's in right now.

Quote:
Originally Posted by Jlyles View Post
My buyers ratified a short sale contract subject to lendor's approval.

Tonight the listing agent called to tell me that Indymac told him the short sale case was closed because his client had entered into loan modification with the lender. The listing agent pulled the property out of foreclosure and was moving forward, and his clients indicated that they had received numerous letters, etc. so they were convinced that this was a good deal for them.

Now, I'm not opposed to loan modification, but I have some questions based on any experience you've (all y'all) have had. Is Indymac likely to forgive the missing payments or are they likely to just roll it into another loan? Is the monthly payment likely to be reasonable? I've heard that many loan modifications are $150/mo. lower ... which isn't very reasonable in my locale.

I told the listing agent to wait few days, follow up with his client and we'll go from there.

Thanks for any input!
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Old 03-25-2010, 07:36 PM
 
Location: Northern Virginia
258 posts, read 309,514 times
Reputation: 68
Thanks, Brandon, appreciate the input, and that's what I've been hearing. Another agent had a listing client bail on her yesterday saying the same thing. BofA's marketing campaign sent her client modification information and he wants to withdraw. Ratified contract, written approval from the first (BofA) and she told him "banks lie". $3,000 for the BofA marketing department and nothing for the hours spent working on his behalf. My buyers emailed "You DO know that April Fool's Day isn't here yet?" I like to make fun, but this isn't the time to do it.

Quote:
Originally Posted by Brandon Hoffman View Post
~2% of loans are actually modified. Find out if it's one of the temporary or trial loan mods, or if it's permanent. Being a gambling man, I'm going to say it's a trial 3 month loan mod.
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Old 03-25-2010, 07:42 PM
 
Location: Northern Virginia
258 posts, read 309,514 times
Reputation: 68
Hey, I hear that loud and clear, and the bookmark is an excellent analogy! I don't take short sale listings because I can't do them justice. I thought I was well-versed in representing my buyers, but the banking industry isn't doing a good job for any of us. Thx.

Quote:
Originally Posted by Tish Thompson View Post
I agree with Brandon. What I'm seeing is that the loan mods that are approved are typically for 6 months or less and the homeowner ends up right back where they started....stressing over a payment he/she can't afford. The difference in payments is usually so small that I don't know why people even accept them. From my experience, a loan mod is something like a "bookmark" in the book of foreclosure: the process starts, a loan mod is requested and approved, and foreclosure stops at that "page". If the owner misses a payment, the process continues from where it stopped at loan modification. I honestly can't figure out what the benefit is to doing it. I have a client in that situation right now and it's killing me that he thinks he's being helped. I have to sit on my hands not able to reach in and save him from the mess he's in right now.
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Old 03-25-2010, 08:46 PM
 
Location: Columbia, SC
6,961 posts, read 10,634,824 times
Reputation: 3506
Quote:
Originally Posted by Jlyles View Post
Hey, I hear that loud and clear, and the bookmark is an excellent analogy! I don't take short sale listings because I can't do them justice. I thought I was well-versed in representing my buyers, but the banking industry isn't doing a good job for any of us. Thx.
I actually enjoy the short sales as crazy as it sounds. They can be frustrating but I get a sense of accomplishment helping them out, similar to working with a first time buyer. I've been through Scott Kenkel's short sale course and NAR version that got me certified. Scott's was much more useful, but they were both informative. That being said, I'm fairly picky about which ones I'll work with, because they can be draining. they don't have to be hard, and they close as long as it's a legit short sale.

Scot Kenkel's Short Sale Listing Boot Camp (mods, i have nothing to do with this site other than it's an effective place for my fellow agents to learn and I recommend. Just throwing that out in case you cut it.)
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