One of the reasons INDYMAC and most probably others are not doing loan modifications

[xiamiam]

they are profiting..call your congresspeople, people

http://iamfacingforeclosure.com/blog/2009/12/01/anatomy-of-a-government-abetteded-fraud-why-indymaconewest-always-forecloses/

Anatomy of a Government-Abetted Fraud: Why Indymac/OneWest Always Forecloses
December 1st, 2009 • Related • Filed Under
Filed Under: Avoid Foreclosure • FDIC • HAMP • IndyMac/OneWest • facing foreclosure • featured • government-abetted fraud

Several times per week, I get phone calls from attorneys. These calls all start out the same. “I am unable to get loan modifications done through a lender. What can I do?” The first question I ask is if the lender is Indymac/One West. Invariably, it is.

I also field the same type of calls from homeowners and from loan modification companies. Everyone is having the problem of Indymac not cooperating with regard to doing loan modifications. Furthermore, if I google the issue or check out loan modification forums, the same is true on the internet.

What is going on with Indymac/One West? Why aren’t they doing loan modifications? This article will try and bring together the known facts for a better understanding of the situation, and discuss what the Indymac situation means for foreclosures in general — and the government’s response to the crisis. First, to understand the situation today, one must have an understanding of the recent history of Indymac.
History

Indymac was a national bank in the U.S. It was insured by the FDIC. On July 11, 2008, Indymac failed and was taken over by the FDIC.

Indymac offered mortgage loans to homeowners. A large number of these loans were Option ARM mortgages using stated income programs. The loans were offered by Indymac retail, and also through Mortgage Bankers would fund the loans and then Indymac would buy them and reimburse the Mortgage Banker. Mortgage Brokers were also invited to the party to sell these loans.

During the height of the Housing Boom, Indymac gave these loans out like a homeowner gives out candy at Halloween. The loans were sold to homeowners by brokers who desired the large rebates that Indymac offered for the loans. The rebates were usually about three points. What is not commonly known is that when the Option ARM was sold to Wall Street, the lender would realize from four to six points, and the three point rebate to the broker was paid from these proceeds. So the lender “pocketed” three points themselves for each loan.
more at link and worth your time

[laughingliberal]

1. Kick

This is, at least, the 3rd story I have read about One West foreclosing on anyone and everyone they could with no attempts to modify loans or work with the homeowners. Some may recall this is the bank the judge told to take a hike and awarded a couple they were foreclosing on their home. He was, you may recall, fed up with their absolute refusal to work, in any way, with this couple who was falling behind despite their efforts to keep paying.

[LiberalAndProud]

2. Rob a grocery store, go to jail. Rob a country on the other hand...

One can only ask, WTF?!

I am troubled by the mention of George Soros' name in the article.

[Froward69]

3. this must be why

other lenders will not sell houses/notes at the foreclosed rate. only selling at the original sales price.

one must go to the trustee sale with cash to get any bargains or to stave off someone loosing their home.


un-fucking-believable.

[Better Today]

4. I'm a bit confused how a bank taken over by the FDIC isn't doing the mods.

I guess I'm just naive as to how this stuff works. I would've thought an FDIC run bank would be one the best for loan mods.

[LiberalAndProud]

5. You should read the article.

One Bank bought IndyBank back from the FDIC (virtually the same players) with a sweet deal to cover all losses.

[Better Today]

6. I'm too depressed about the screwings we are all getting from banks, the Fed, etc.

to read than snippets. My bad. Thanks.

[LiberalAndProud]

7. I don't always follow the links either -- so little time, so many links.

I'm glad I read this one.