Polishing a turd definition: The act of trying to make something hopelessly weak and unattractive appear strong and appealing. An impossible process that usually results in a larger, uglier turd.

Example: She tried to look more attractive by getting plastic surgery, but let’s face it, you can’t polish a turd.

“Bottom line America, thousands of homeowners are just walking away from their underwater homes every month and any loan modification plan that does not address “true” market real estate values is a plan made to fail and a mortgage turd that cannot be polished.”

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If you’re having difficulty paying your existing home loan in the context of changes in your income or in the market generally, there are a number of options to consider. You should never assume that your only route out is to lose your home - there are a number of possible solutions to help you stay in your home, and move to a more sustainable loan structure.

Ultimately, loan modification plans that can help you to meet gaps in your existing terms are determined by negotiations between you and your lending institution. Most lenders have loan negotiators who work with borrowers to negotiate new terms, or they may decide against re-negotiation in certain cases. Because it is in your lender’s and mortgage servicers best interests to help you stay active on your loan and there is an extreme mortgage crisis, an increasing numbers of lenders are considering loan modification plans on a wholesale basis. Read the rest of this entry »

Paul Kielsel, an attorney and fellow blogger in Los Angeles, Ca. is reporting that the the FDIC is giving Indymac borrowers who have negative ammortization mortgages AKA Pay Option ARM’s till Friday October 24th to seek a loan modification or to take legal action against Indymac. Read the rest of this entry »

Applying workout procedures for troubled loans in a failed bank scenario is something the FDIC has been doing since the 1980s. Our experience has been that turning troubled loans into performing loans enhances overall value. In recent years, we have seen troubled loan portfolios yield about 32 percent of book value compared to our sales of performing loans, which have yielded over 87 percent.

In implementing the loss-mitigation program, IndyMac Federal’s first priority is maximizing the value of the mortgages by assisting borrowers who are seriously delinquent or in default on their mortgages. However, where its servicing agreements permit, IndyMac Federal also is working with borrowers who face upcoming resets or other changes in their ability to repay. Read the rest of this entry »

This blog and my life has been dedicated to following what lenders, servicers and our government have done and are doing to assist the millions of Americans that are facing foreclosure as a result of being sold defective credit instruments. AKA subprime and ALT A mortgages.

In my hundreds of hours of research and work, only one agency and person seems to have a “true” grasp of reality and what needs to be done in order to help clean up the mortgage and housing mess.

That agency is the Federal Deposit Corporation (FDIC) and that person is the Chairwoman, Ms. Sheila Bair. Read the rest of this entry »

Good afternoon, thank you for taking the time to participate in this conference call. I would recognize John Bovenzi with IndyMac Federal, who is also on the line, and thank him for his contributions to today’s important announcement. John will provide brief remarks following mine.

I am pleased today to announce the implementation of a systematic loan modification program for troubled residential borrowers who have mortgages owned or serviced by IndyMac. Read the rest of this entry »

From the FDIC: IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages.

The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well as improve returns to the creditors of the former IndyMac Bank and to investors in those mortgages. The new program will help IndyMac Federal improve its mortgage portfolio and servicing by modifying troubled mortgages, where appropriate, into performing mortgages.

Below are some questions and answers regarding the program: Read the rest of this entry »

PASADENA, California (CNN) — California bank IndyMac will reopen as a “strong and safe institution” under federal management and a new name Monday, days after regulators closed it, the firm’s new CEO said Sunday.

“Come Monday morning, it will be business as usual for all insured customers,” said John Bovenzi, who was placed in charge of IndyMac — now named IndyMac Federal Bank — after regulators seized the firm Friday. Read the rest of this entry »