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Is it better to let my house go?
October 30, 2009
We tried several times to get a loan modification with Indymac and even submitted a complaint to the Office of Thrift Supervision. They made a determination that it was more costly to help us remodify our loan than to let our house go on foreclosure. I don't understand this, it does not make sense. Is it better to let my house go?
Comments
billy your right thats why they are foreclosing on everyone, the are real sneaky, help home owners not kick us on the streets
billy your right thats why they are foreclosing on everyone, the are real sneaky, help home owners not kick us on the streets
Write a certified letter to the bank’s insurance company that you’ve done everything you possibly can and more, but the bank refuses to modify or refinance your loan to allow you to remain in your home and keep the payments current. Advise the bank’s insurance company that if you default and the bank makes a claim against the insurance policy, then the insurance company should refuse to pay the claim because you, the homeowner, tried his or her very best to keep the loan current but the bank refused, lied and stonewalled. The bank has in effect committed insurance fraud.INDYMAC BANK HOME OWNERS, READ AND DO THIS PLEASE
Write a certified letter to the bank’s insurance company that you’ve done everything you possibly can and more, but the bank refuses to modify or refinance your loan to allow you to remain in your home and keep the payments current. Advise the bank’s insurance company that if you default and the bank makes a claim against the insurance policy, then the insurance company should refuse to pay the claim because you, the homeowner, tried his or her very best to keep the loan current but the bank refused, lied and stonewalled. The bank has in effect committed insurance fraud.
We have been in the loan modification process for 9 months. I was told yesterday our file was submitted to underwriting. I do not have much confidence that JP Chase Morgan will help us out, who knows? We put $120k down on this house and owe around $650k, house is probably worth $625 if that. Needs lots of work as it did when we purchased it in 2005.
Since Short Sale hurts credit almost as much as a foreclosure - I am leaning towards foreclosure. I am hearing that foreclosures today may only affect your credit and chance of getting a home loan in the future for only about 2 years. Is this correct?
Since Short Sale hurts credit almost as much as a foreclosure - I am leaning towards foreclosure. I am hearing that foreclosures today may only affect your credit and chance of getting a home loan in the future for only about 2 years. Is this correct?
Linda,
My understanding is that a forclosure will stay on your credit report for 7 years. I do know however, it is 3 years until you will be able to purchase another home as long as you have built your credit score up in those 3 years. Also, you must qualify for a loan at that time and have a down payment. Right now it is required to have 20% down on a home but who knows what kind of programs or incentives might come up 3 years from now.
I agree with your decision 100%. On a short sale you could also have to pay taxes on the negative amount (what you owe opposed to what the home sales for). Unfortunately, walking away from your home could be the most financially sound thing to do in many cases.
Billy
My understanding is that a forclosure will stay on your credit report for 7 years. I do know however, it is 3 years until you will be able to purchase another home as long as you have built your credit score up in those 3 years. Also, you must qualify for a loan at that time and have a down payment. Right now it is required to have 20% down on a home but who knows what kind of programs or incentives might come up 3 years from now.
I agree with your decision 100%. On a short sale you could also have to pay taxes on the negative amount (what you owe opposed to what the home sales for). Unfortunately, walking away from your home could be the most financially sound thing to do in many cases.
Billy
Indymac put a foreclosure on my credit already. Never left the home and did a modification with them.. Since the foreclosure is on my history, should I just walk away since the damage is already done? I'm questioning why my credit shows a foreclosure, and my family and I still live in the same home 2yrs later, paying the same mortgage holder? HELP PLEASE WITH ADVICE
The reason they told you this is because the banks are only required to modify so many loans. That being said, they pick and choose which loans they will modify(of coarse being the loans that will benefit them the most to modify, to minimize losses).
The main thing to consider here is the fact that the TARP money goes to the banks to cover losses. One thing many people don't know is that Indymac,now One West Bank, bought your homeloan for pennies on the dollar. On top of that, if you forclose, the TARP money goes to the lender to reimburse them 80-90% of your origional loan amount. That being the case, they own your loan for pennies on the dollar + they get reimbursed 80-90% of the loan if you forclose = big money for One West Bank!!!
Billy