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IndyMac Mortgage Services Blog

What Do I Do If I'm Denied for a Modification

05/06/2010

What Do I Do If I'm Denied for a Modification? If you didn’t qualify for payment help through HAMP (the Home Affordable Modification Program), hope is not lost! You can still take control of your financial situation by learning about the additional options available to you through IndyMac Mortgage Services.

We understand the reality that not all borrowers will meet HAMP guidelines. So, in an effort to give you as many options as possible, we’ve come up with several home preservation solutions that may apply to your financial situation.

Take a glance at these options below, and give us a call at 1.800.781.7399 as soon as possible to find out which one best fits your situation. IndyMac Mortgage Services customer service is open Monday – Friday, 8 a.m. – 9 p.m. (EST).

Solutions for Temporary Financial Hardships:

Going through a rough spot? This can include temporary unemployment/underemployment, short-term medical expenses or any other financial difficulty that may improve in the foreseeable future.

Repayment Plan

Who it’s for: Borrowers who are already delinquent on their mortgage.

What it does: Spreads the delinquent amount over several months so you can continue making your monthly mortgage payments plus a portion of the delinquent amount with no additional late fees.

Temporary Payment Reduction

Who it’s for: Borrowers who need to buy some time to avoid defaulting on their mortgage.

What it does: Reduces your mortgage payment temporarily (up to six months) while you’re reviewed for a more permanent solution to avoid foreclosure.

Keep in mind that eligibility for a repayment plan or temporary payment reduction is determined on a case-by-case basis and will depend on the specific type of temporary financial hardship you’re experiencing.

Alternatives to Foreclosure:

Facing foreclosure? You may be able to avoid this undesirable, forced process by taking control of your financial situation with one of the following options:

Short Sale (Click here to download and print a short sale application.)

Who it’s for: Homeowners who can no longer afford mortgage payments of any kind, have a decreased property value, and wish to sell their home.

What it does: Allows your home to be sold for an amount less than what you owe on your mortgage. Reflected on your credit report as “Settled for Less than the Full Balance Owed,” which may be less damaging to your credit score than foreclosure.

Deed-in-Lieu of Foreclosure

Who it’s for: Homeowners who can no longer afford mortgage payments of any kind and are unable to sell their home due to declining property values.

What it does: Allows you to voluntarily transfer your property to IndyMac Mortgage Services in exchange for preventing forced foreclosure. Reflected on your credit report as “Settled for Less than the Full Balance Owed,” which may be less damaging to your credit score than foreclosure.

It is important to note that a short sale or deed-in-lieu of foreclosure may adversely affect your ability to obtain credit in the future. We strongly suggest you consult with an accountant, tax attorney or CPA (Certified Public Accountant) for advice regarding credit and tax implications.

Think you might be a good candidate for one of our other home preservation solutions or alternatives to foreclosure? Call IndyMac Mortgage Services today at 1.800.781.7399 to learn more about the options available to you.

Click here to read important disclosures regarding HAMP.