50%+ Of Delinquent IndyMac Borrowers Fail To Respond To Lender's Loan Modification Offer

The Los Angeles Times reports:

• The Federal Deposit Insurance Corp.'s program to lower loan payments for struggling borrowers with mortgages from IndyMac Bank has been lauded by consumer advocates and government leaders as a model of foreclosure prevention.

• But when the FDIC, which is running IndyMac, mailed out 35,000 letters offering homeowners a chance to rework the terms of their mortgages, more than half the borrowers were apparently so discouraged, scared or stressed out that they didn't bother to respond.

For more, see Struggling IndyMac borrowers may be in the dark about offer to lower their mortgage payments (The FDIC, which is running the bank, says more than half of those who were sent letters giving them the chance to rework the terms of their loans haven't responded).