CW REO's

NEW -> Contingent Buyer Assistance Program
You know what's funny?

I wasn't here for the 90's trouble, but if I had been, I cannot imagine ever forgetting it.

How can someone who has ever been upside-down have faith again?

I will never again allow such a thing to happen to me. This is seared-in for life!

(I'm not upside-down, but who knows! Certainly I'm out something on paper.)
 
From IndyMac's prospectus:

The Servicer may modify any Mortgage Loan at the request of the related mortgagor, provided that the Servicer purchases the Mortgage Loan from the issuing entity immediately preceding the modification and the modification is in lieu of refinancing. Modification of a Mortgage Loan may be made in lieu of refinancing to change the interest rate on the related Mortgage Loan or to alter any other characteristics of the Mortgage Loans as, for example, to change the terms relating to the adjustment of the mortgage interest rate. The Servicer attempts to identify mortgagors who are likely to refinance their Mortgage Loans (and therefore cause a prepayment in full) and inform them of the availability of the option of modification in lieu of refinancing. Mortgagors who are informed of this option are more likely to request a modification than mortgagors who are not so informed. Any purchase of a Mortgage Loan subject to a modification will be for a price equal to 100% of the Stated Principal Balance of that Mortgage Loan, plus accrued and unpaid interest on the Mortgage Loan up to the first day of the month in which the proceeds are to be distributed at the applicable net mortgage rate, net of any unreimbursed advances of principal and interest on the Mortgage Loan made by the Servicer. The Servicer will deposit the purchase price in the Certificate Account within one business day of the purchase of that Mortgage Loan. The purchase price will be treated by the Servicer as a prepayment in full of the related Mortgage Loan, and will be distributed by the trustee in accordance with the pooling and servicing agreement. Purchases of Mortgage Loans may occur when prevailing interest rates are below the interest rates on the Mortgage Loans and mortgagors request modifications as an alternative to refinancings. The Servicer will indemnify the issuing entity against liability for any prohibited transactions taxes and any interest, additions or penalties imposed on any REMIC as a result of any modification or purchase.
 
If I read that correctly:

(In the example of the offer made to me)

The old loan would be purchased/paid at 100% of its balance. IndyMac would then make a "new" loan to me at a lower rate, and presumably, make some spread when it resecuritizes it. So they win. I win. MBS holders do not lose, except for revenue stream, which was already in jeopardy due to being above-market.

Is that correct?
 
Janet - I don't think you are being difficult. I think you are being sweet and somewhat naive. I think you believe in fairness and justice and think that our government will look out for it's citizens best interest and possibly succeed.
 
Not exactly. Indymac would be a big loser on this. If they bought the loan at the balance plus any unpaid or accrued interest plus any advanced fees. So if it were a $500k interest only loan with no principal paid they, that is 60 days late and IMB was paid a 1% spread fee the total IMB would have to pay is over $510k. Plus they are stuck with a loan at a below market rate that they can't sell.

In your personal example they would lose because they again would be holding a loan at below market rate that they can't sell.
 
Keep in mind that lenders are only doing these workouts because they think it is less painful than foreclosure. This is minimizing pain and loss not making money. The lenders are going to be losers, it is just a matter of how many and how bad.
 
Sorry, I lost that.

My example is of a good customer with no issues, and not behind.

Maestro thinks they will come out ahead.

Distressed loans are different, so I'm sure someone loses.

?
 
IR,

That's what was so weird about the offer - I don't get their motivation.
 
Here is one from Master Asset Backed Securities:

In instances in which a mortgage loan is in default or if default is reasonably foreseeable, and if determined by the master servicer to be in the best interest of the securityholders, the master servicer or servicer may permit servicing modifications of the mortgage loan rather than proceeding with foreclosure. However, the master servicer’s and the servicer’s ability to perform servicing modifications will be subject to some limitations, including but not limited to the following. Advances and other amounts may be added to the outstanding principal balance of a mortgage loan only once during the life of a mortgage loan. Any amounts added to the principal balance of the mortgage loan, or capitalized amounts added to the mortgage loan, will be required to be fully amortized over the remaining term of the mortgage loan. All capitalizations are to be implemented in accordance with the sponsor’s standards and may be implemented only by servicers that have been approved by the master servicer for thatpurpose. The final maturity of any mortgage loan shall not be extended beyond the assumed final distribution date. No servicing modification with respect to a mortgage loan will have the effect of reducing the mortgage rate below one half of the mortgage rate as in effect on the cut off date, but not less than the servicing fee rate. Further, the aggregate current principal balance of all mortgage loans subject to modifications can be no more than five percent(5%) of the aggregate principal balance of the mortgage loans as of the Cut-Off Date, but this limit may increase from time to time with the consent of the rating agencies.

Any Advances made on any mortgage loan will be reduced to reflect any related servicing modifications previously made. The mortgage rate and Net Mortgage Rate as to any mortgage loan will be deemed not reduced by any servicing modification, so that the calculation of accrued certificate interest (as defined in the prospectus supplement) payable on the offered securities will not be affected by the servicing modification.
 
I can only surmise IndyMac thinks my stuff's gonna hit the fan!

I wonder what they know that I don't!
 
"That's what was so wierd about the offer - I don't get their motivation."

I suspect they were being proactive. If you are here in Irvine, they know you are at ground zero for the housing bubble. The lenders are going to lose their collective asses here in California, so they will want to save as many customers as they can before it is too late to do anything about it.
 
I've been looking at the Credit Suisse reset chart and have a few observations/questions:

For simplicity, I will assume it is now January 2007, since that is the timeframe the chart uses.

1. The chart shows that almost all subprime ARMs are out of the system by January 2010, and most of those out of the system by January 2009.

2. After that, the remaining popuation of ARMs are either mid-term ARMs (likely 5/1 or 5/6) originated more recently, or mid-term ARMs (likely 7/1, 7/6, 10/1, 10/6) orignated a few years back.

3. There are six categories of ARMs described (this is confusing because these categories overlap (an option ARM can also be an ALT-A arm)).

4. Of these six categories of ARMS remaining:

a. Subprime is practically non-existent.

b. Prime is presumably not threatening.

c. Agency is presumably not threatening.

d. ALT-A is threatening, but it is not significant in the chart.

e. Option is threatening.

f. Unsecuritzied is threatening.

OK. The questions:

It is confusing to me that they have Option ARMs "resetting" 3-5 years out, since they are typically adjusted every month. Do they mean having their principal recast?

What is meant by "unsecuritized"? Is this neg-am? Not in a "security"?

Of the Option ARMs, how many might be stated? Prime credit?

These appear to be the threats, yet there's not enough information to make judgements on.

Am I understanding this correctly?
 
Wow... Saw 212 Dewdrop in this thread. Nice comp-killer. 2/2.5 1200 sq ft for $499. It just appeared as MLS S502633.

Sale History

06/08/2007: $477,000

06/30/2005: $551,000

01/21/2004: $370,500

Much fear and loathing in Quail Hill, I'll bet
 
Wow the bank wants $22k more than they took it back for.

How about the neighbor across the way at 208 Tall Oak that the bank bought back for $584k on Tuesday?
 
a. Subprime is practically non-existent.

b. Prime is presumably not threatening.

c. Agency is presumably not threatening.

I am not looking at it right now, but from what I remember, subprime is huge. I do not understand why you think prime is presumably not threatening or agency is presumably not threatening.

I am assuming the worst and hoping for the best.
 
I come into your neighborhood

You think Im all gloom

Dropping your price will do no good

The bank nicknamed me doom

I will make your wife cry

Just wait until Im sold

Kiss those profits goodbye

I made your lender fold

Chorus:

Because Im a comp killer destroying koolaid prices. Because Im a comp killer making equity disappear. Because Im a comp killer of profit dreams. Comp killer.

Please continue........
 
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