Loan Articles

The government recently took over Indy mac bank after a giant run on deposits. To prevent further losses, they are offering new loan terms to homeowners that are at the brink of foreclosure.

The FDIC will offer loan modifications that will include rate reductions, and extended loan terms for IndyMac homeowners. It is reported that 29,000 modifications will be offered in the next month.

The reported objective of the FDIC is to recover as much of as possible on loans that are considered to be foreclosure candidates. Many homeowners will benefit from the new terms, but the objective of the plan is to recover profits. The FDIC seeks to sell Indy Mac and it's assets.

IndyMac Federal claims that they will only offer new terms to borrowers where it will increase the value of current assets. It appears that Indy Mac will only offer the streamlined loan modifications to a small portion of homeowners. The offer will only be available for the first mortgage of the homeowners primary residence. Homeowners must also be able to afford the new loan terms in order to qualify for the offer.

The new loan interest rates will be based off of the current Freddie Mac averages for conforming loans. DTI ratios's to range in the area of 38% with PITI

If you have an Indy mac mortgage, and you do not receive a modification offer or you cannot afford the modified terms, contact us and we will work to negotiate a better modification for you.