Upon successful completion of their trial period payments our client was offered a permanent modification with the terms listed below.
Principal Balance: $578,311.19
Years: 1-5
Interest Rate: 2.0 %
Monthly Principal and Interest Payment: $1719.95
Estimated Monthly Escrow Payment Amount: $671.39
Year: 6
Interest Rate: 3.0%
Monthly Principal and Interest Payment: $1998.18
(Plus the estimated monthly escrow payment)
Year: 7
Interest Rate: 4.0%
Monthly Principal and Interest Payment: $2291.87
(Plus the estimated monthly escrow payment)
Years: 8-40
Interest Rate: 5.0%
Monthly Principal and Interest Payment: $2598.64
(Plus the estimated monthly escrow payment)
*The escrow payments may adjust periodically in accordance with applicable law and therefore the total monthly payment may change accordingly*
Summary of the modified mortgage:
New Principal Balance: Any past due amounts as of the end of the trial period, including unpaid interest, real estate taxes, insurance premiums, and certain assessments paid on your behalf to a third party, will be added to your mortgage loan balance. When the final trial period payment is made we will waive ALL late charges that have accrued and remain unpaid at the end of the trial period payment
Term Extension: To reduce your mortgage payment, we will extend the term of your mortgage. This means we will spread your payments out over a longer period.
Deferral of Principal: To further reduce your mortgage payment, we will defer collection of and not collect interest on $10,344.09 of your outstanding principal. You will not be required to make monthly payments on that portion. This portion of principal will be due when you pay off the modified loan, which will be whenever you sell or transfer an interest in your house, refinance the loan, or when the last scheduled payment is due.
Escrow Account:The terms of your Modification Agreement require the Servicer to set aside a portion of your new monthly payment in an escrow account for payment of your property taxes, insurance premiums and other required fees. Any prior waiver of escrows by your lender is no longer in effect. IndyMac Mortgage Services will draw on this account to pay your real estate taxes and insurance premiums as they come due. Please note that your escrow payment amount will adjust if your taxes, insurance premiums and/or assessment amounts change, so the amount of your monthly payment that IndyMac Mortgage Services must place in escrow will also adjust as permitted by law. This means that your monthly payment may change. Your initial monthly escrow payment is $671.44
Fees: There are no fees or other charges for this modification
Borrower Incentive: If you make your monthly mortgage payments on time, you will accrue a monthly benefit equal to $83.33. As long as your mortgage loan does not become 90 days delinquent, we will apply your accrued monthly benefit to your mortgage loan and reduce your principal balance after each of the of the first through fifth anniversaries of the month in which the trial plan is executed. If your modified loan ever becomes 90 days delinquent, you will lose all accrued but unapplied principal reduction benefits and will no longer be eligible to accrue additional principal reduction benefits even if the mortgage is later brought current.
If you are having trouble making your mortgage payments contact First Source Law to speak with an attorney regarding your situation. We can put the foreclosure process on hold while we negotiate a new payment that you can afford.
This post was written by Aubrey Feriante
