Complaint Review: IndyMac Bank - Kalamazoo Michigan

This will be long so I will try to paraphrase. Working on a loan mod with IndyMac since 7/31/09. 5 mths behind at the time, started making full payments 9/1/09. Delinquency was our fault (loss of income, medical bills, irresponsibility with money), but a large part from ever increasing payment on a FIXED mortgage due to escrow shortages, even though our taxes and insurance decreased almost $900 that year.

11/09 recd packet, approved for a trial mod. $700 less than our original payment, included escrow. The packet said sign, return with first payment by X date, make trial payments for 3 months on time, expect modified payment to be similar to trial mod. Process done within 30 days of the trial mod being satisfactorily completed. Signed, sent check, went on merry way. Fast forward to 1/27/10, no final packet. Payment due 2/1/10 what to do? Contacted IMB, told backed up, continue trial payments until receive final packet, two more weeks.

2/17/10 recd letter saying escrow re-evaluated payment lowered $600 (things that make you go hmm). Amount still higher trial, contact IMB again. Where is the packet, Oh, its taking longer than expected due to high volumes. What is letter? Oh, our escrow dept. doesnt communicate with other depts. IMB said keeping trial mod payment until final package arrives.

3/2010 recd letter HAMP mod was denied! Made the payments under terms WTH? Housing payment must be more than 33% of income. Income listed as $475 more a month than what we make WTH? Person working mod calculated bi-weekly (26 paychecks a yr) instead of 15th and 30th (actual 24 paychecks a yr). 45 minutes to figure out. Told final mod packet on the way to help us out. Correcting income wont change the answer (?). 8 months into ordeal didnt care to argue more. Wait for packet.

4/2/10 recd final mod packet. Payment $400 more than trial still $300 less than original. Had until 4/28/10 to return. Dragged feet signing and returning, something didnt feel right. 4/23/10 (Friday) sat down reviewed docs and noticed (AH HA) payment said does NOT included taxes, insurance, etc WHAT?!?! Cant be right! Means payment would be $500 more AFTER the mod than before , adding to end of loan with same term only adds $71.08 each month. Called IMB, they acknowledged error almost immediately. Not including taxes was an error, the payment DID include. Told dept was already closed, sign and return and trust correction or wait and call first thing 4/26/10. Trust them? NO.

Called 4/26/10 acknowledged error, apologized and advised either sign, return and trust to correct (sounded familiar) or I could reject the mod and re-apply 9 months after start! After talking to trusted people, signed & returned the paperwork 4/26/10.  Called every 14 days since 5/6/10. Made every payment on our loan in the amount IMB has indicated since 9/2010.

It is now 10/2010. IMB HAS YET TO CORRECT ERROR. Not only have they not corrected the error, their computer system recognizes the error and we now have almost $18,000 sitting in a suspense account because the computer will not let them credit the account! Continue to receive monthly default letters, sometimes 2 or 3 a month, by both regular and certified mail. Told every 14 days when I call we are not in danger of foreclosure because of the error etc. blah blah blah. I have every date, time, name and agent ID, every supervisor name and notes on every call. Every date they promised a correction by, all have come and gone. The dollar amounts on the default letters change sometimes 2 or 3 times a month with huge difference for no apparent reason. We even received one in 7/2010 saying our default cure amount was $3,080.19 which was followed literally two days later with one for $27,422.78.

At wits end. House is worth nowhere near mortgage, but dream home custom built. I called tonight 10/5/10 IMB promised me the error would be corrected by this 10/8/10. I pray they honor the payment and correctly apply the almost $18,000.00 we have paid. Seriously considering getting a lawyer for emotional distress and harassment (twice the default letters have gone to different neighbors mail boxes, how embarrassing!), not to mention the hours upon hours I have spend talking to them, writing to them, sending them info, etc.

It has been 1 year, 2 months and 5 days since we started this process and 5 months, 1 week and 5 days since IMB acknowledged and promised to correct the error. In reality if I took over 5 months to correct an error I would have been fired along ago.

Why is this acceptable?