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Having trouble modifying your home loan?
You are not the only one.
Indymac used to be an independent bank till it filed for bankruptcy in 2008 and was bailed out by FDIC. Later, IndyMac was bought and transformed into One West Bank by a private equity firm called Dune Capital Management, a group that includes billionaire George Soros and Dell Inc. founder Michael Dell, who agreed to buy the failed bank for $13.9 billion. The bank’s assets at the beginning of this year (2009) totaled $23.5 billion so they made some billions immediately at the time of purchase.
Then, they struck a 20/80 loss share deal with FDIC. OneWest Bank agreed to pick up 20% of the loss whereas FDIC would pick up 80%. IndyMac would end up owning the property after foreclosure, making a sweet profit from the sale of the house. Hence, they have no reason to modify home loans and every reason to take over our homes. Many other banks have similar agreements with FDIC, so in effect, these banks are profiting on taxpayer dollars. Translation: People are becoming homeless on your dollars.
The system needs checks and balances, as well as transparency. Urge Congress to stop foreclosures, launch an investigation into the unfair lending and loan modification practices now and create clear transparent guidelines to help homeowners with their loans.
It’s also for a class action civil lawsuit in every state. If you have been screwed over by IndyMac and One West Bank or know anyone who has, see what you can do here.
My story: There was a time when we had equity on our home but with the real estate bubble burst, the property has gone from $710K to $250.
In the past year, due to the recession, we have lost more than 50% of our gross household income. It was no longer possible to pay our mortgage so we called IndyMac for help, who told us that there was nothing they could do until we fell behind in payments.
Unfortunately, we fell for the scam given we didn’t see other options at the time. After months of negotiating–filing and refiling the same paperwork, calling daily to ensure that all paperwork was in order, filing addition unnecessary forms and being given the worst run-around, Indymac decided to give us a balloon payment offer in mid-June 2009, around the same time as the Nevada homeowners lawsuit against them.
We accepted but on August 5, we got a letter in the mail from the crooks at Indymac saying that they were withdrawing their offer. Reason given: We were late in filing. Of course, there is ample evidence that we filed on time–including the fact that both my mother and our attorney called to check that they had gotten the documents on time–so that cannot be the reason. And by the way, why does it take a month to determine that someone was ‘late in filing’ in order to reject them?
On September 9, Indymac Bank (One West) once again refused to modify our house mortgage. What was their excuse this time?
“Your expense/income ratio does not fit into our system.”
When asked for clarification, the service representative explained that our expenses are much more than our income, hence the loan could not be modified. Yes, well of course our expenses are more than our income. That is precisely why we are seeking a loan modification!
Indymac then agreed to yet another package. 1 month into the negotiation, they backed out again, saying that they could not make a decision on the package we had agreed to as they were redoing it. They promised to send another package. We are still waiting on this “new package.”
Before the New Year, a representative from Indymac called and told us to “keep on waiting” and hung up! My mom tried to call back, but no one would pick up. Just yesterday, we were told that our house would be foreclosed on January 19, 2010. We were shocked and asked about the so-called package they were supposed to send. IndyMac said it did not matter as they had every right to foreclose. Now we know that all of this was a delaying, wearing us down tactic.
Loan modification programs are unregulated scams. This is the narrative: When we call the lenders for help with our mortgage, they tell us there is nothing they can do till we miss a payment. So we go ahead and miss payments and then the warning letters arrive. We file and refile income/expense reports, negotiate for a good package but keep getting rejected. The process drags on for months, costing us productive time, money, energy, sleep and deteriorating health. They keep losing files, misappropriating funds, crashing their systems, changing their numbers, and rolling out ‘new packages’ that they later reject when you apply for them. A year later, they tell us there is nothing they can do but ‘foreclose’ the house. How many stories fit into this narrative?