Indymac Loan Modification Success for Homeowners Located in Escondido, CA

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The Law Offices of Michael Gaddis recently obtained a final HAMP Indymac loan modification for homeowners located in Escondido, CA.  When the homeowners first consulted with Michael Gaddis they were resolved to short selling their property.  They did not want a loan modification as they were retired and wanted to move to the East Coast to be closer to their grandchildren.  However, after visiting the East Coast in the dead of summer the homeowners decided to rethink their decision and retained Michael Gaddis in order to see if they could obtain an Indymac loan modification.  Although they were retired the homeowners had several sources of income constituting their household income creating a rather complex Indymac loan modification application package.  After a longer than usual negotiation process, Michael Gaddis was able to obtain a trial Indymac loan modification which the homeowners completed without issue.

The homeowners received their final Indymac loan modification paperwork on or around January 18, 2013.  The final Indymac loan modification is a step-rate loan modification with an initial interest rate of 2% for the first five (5) years.  In year six (6) the interest rate changes to 3% followed by one final increase in year seven (7) to 3.375%.  The interest rate remains fixed at 3.375% for the remainder of the term.  The new principal, interest, taxes and insurance (“PITI”) of $1,855.22 represents an over $800 per month reduction from what the homeowners were paying prior to becoming delinquent.  In processing the loan modification Indymac reduced the interest rate to the floor rate of 2%, extended the amortization term and maturity date out forty (40) years and deferred principal to the end of the loan in the form of a non-interest bearing balloon.  The homeowners were delighted with the outcome and are intent on remaining in this house for the remainder of their lives.

Michael Gaddis and his staff will continue to monitor the homeowners’ file in order to ensure that Indymac receives the signed, final loan modification paperwork; that the terms contained in the Indymac loan modification are properly uploaded into Indymac’s system; and that Indymac returns the homeowners’ account to regular servicing.

To view the Indymac loan modification referred to in this blog as well as other loan modifications obtained by Michael Gaddis please click the following links: and