Indymac IMFB Loan Modification Principal Reduction Interest

If you are pursuing a loan modification with Indymac bank, you may wonder how to successfully negotiate not only a reduction in interest rate, but also a possible principal reduction. Before we dive into the possibility of an Indymac Principal reduction, let's go over the basics of how to conduct loan modifications with Indymac (and other banks for that matter). Primarily, it's crucial to understand the importance of properly documenting your hardship in a hardship letter, and also in a monthly expense worksheet. But, how is hardship expressed in a monthly expense worksheet?

A basic definition of acceptable "Financial Hardship" can be summed up as such: Changes to your monthly expense due to factors that have occurred outside of your own control. These factors can be instances such as loss of work hours, reduction of base pay, loss of overtime, medical conditions, or change in SSI income. (Those are only a few examples of acceptable hardship.) The key here to understand is that the hardship resulted from factors that were outside of your control.

Ok, so let's discuss how this relates to compiling an acceptable monthly expense worksheet that reflects this hardship. A simple mathematical formula depicting "disposable income" can be used to demonstrate this financial hardship. Disposable Income = (Monthly Income - Monthly Expense). Hardship = Disposable Income near $0.00 or slightly negative. Meaning your income is slightly smaller than your expense or they are near even. This shows that your finances are over extended each month. It also shows that through the modification of your mortgage, your disposable income will turn positive thus allowing you to afford your monthly financial commitments once again.

Now that you understand the basics of what Indymac bank is examining to qualify you for a loan modification reduction of interest, how can you bolster your case to result in an Indymac Loan Modification Principal Reduction? At present, because banks are not forced to write down principal balances by any governmental loan modification regulation or guidelines, it is not a guarantee that your modification will result in a principal reduction. However, there are a few tactics that increase the odds of principal reduction and may put the favor of a loan modification principal reduction on your side.

The first item is to include a BPO (Broker Price Opinion of Home Value) or Appraisal when submitting your loan modification application. The BPO and/or Appraisal is a great way to show the lender that they have few options other than a loan modification, because taking the property back would simply mean excessive losses for them.

The second option is to have a company perform a "Forensic Loan Audit" to improve your chances for an Indymac Loan Modification Principal Reduction (or ANY bank). A 'Forensic Loan Audit' is a thorough examination or your original loan documents by a professional to search for items of fraud. If items of fraud are found (more than half of loan documents may contain fraud) within the RESPA, TILA, Regulation Z, 1003, or other items within the loan documents, then these fraudulent items may be used as leverage to influence your lender to reduce your principal balance. Your lender will much rather reduce your principal than be faced with a lawsuit.

Our loan modification services include a forensic loan audit to improve your odds of a principal reduction.

Free Loan Modification Evaluation