Loan aid offer is a hard sell

Of the 652,000 residential first mortgages serviced by IndyMac, 65,100 were more than 60 days past due in mid-October, IndyMac spokesman Evan Wagner said. IndyMac determined that 18,500 of those loans were ineligible for modifications because the investors who bought the loans had not agreed to the FDIC program, the mortgages already were deep in foreclosure proceedings or other complications existed, Wagner said.

IndyMac considered sending modification offers to several thousand additional borrowers on whom it had current income information, but determined that they didn't qualify because they couldn't afford even a reduced monthly payment, he said.

At the other end of the spectrum, IndyMac is rebuffing borrowers who want their debt restructured even though they can afford the payments. The bank has a screening program to identity borrowers who have missed payments intentionally just to appear unable to pay.

Some eligible homeowners have demanded more concessions after IndyMac analyzed their finances and offered to save them hundreds of dollars a month, Wagner said.

"Our offer is our offer," Wagner said. "Take it or leave it."

Paul Leonard, California director for the Center for Responsible Lending, a consumer advocacy group, said he thought the FDIC could reach more borrowers by taking out paid advertisements and sending all its offers by registered mail. But he praised the program as a potential model for the industry.

"No one says it's easy or perfect," Leonard said. "I think what you're seeing, however, is . . . substantial innovations that we hope are going to be successful."

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scott.reckard@latimes.com

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652,000

Mortgages serviced by IndyMac

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65,100

Loans delinquent 60 days or more

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15,000

Offers made to modify loans

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20,000

Invitations sent to discuss modifications

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Source: IndyMac Federal Bank