• Report: #283938

Complaint Review: Indymac Bank

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  • Submitted: Fri, November 09, 2007
  • Updated: Mon, November 12, 2007

  • Reported By:Plano Texas
Indymac Bank
http://www.indymacbank.com/ Nationwide U.S.A.

Indymac Bank SUBPRIME LENDER WHO CHARGES HOMEOWNERS $300 TO REVIEW THEIR FILE WHEN THEY CAN'T MAKE PAYMENTS AND WANT TO SELL Pasadena CALIFORNIA

*Author of original report: Response to Rebuttal "Why should ANY bank do it for free?"

*Consumer Suggestion: Why should ANY bank do this "review for short sale" for free?

*Consumer Suggestion: Why should ANY bank do this "review for short sale" for free?

*Consumer Suggestion: Why should ANY bank do this "review for short sale" for free?

*Consumer Suggestion: Why should ANY bank do this "review for short sale" for free?

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I would very much like to know what you guys out there think about a mortgage bank who demand $300 in certified funds before they will review the file and consider a contract for purchase of their borrowers who are unable to make their payments. These borrowers are TRYING to do the right thing and work out their loans. They have hired a Realtor (like me) to sell their home and negotiate with their bank to take a short payoff on their loan and forgive the difference. This is necessary when you owe more for the home than it is worth under current market conditions!! The banks are the ones who invented so-called "short sales" in the first place because it benefits them financially to sell the property rather than to foreclose on and holder the property. IT SAVES THEM MONEY!!!

I work with homeowners every single day more and more than ever to sell their homes this say. I have worked with many, many lenders but INDYMAC BANK is the first one I have ever encountered that DEMANDS payment of $300 or any other amount of money, for that matter, before they will even talk about a short payoff! It is extortion! I can't help but wonder if it is even legal!

When I spoke with the "supervisor" in the loss mitigation department today, she actually said that the borrowers/homeowners are lucky that is all they charge because other lenders charge up to 3 times that amount to accept a short payoff! THAT IS AN ABSOLUTE LIE!! I had to call her on that one and let her know that she has been misinformed and that part of her "script" is simply not true. To my knowledge, INDYMAC BANK is unique in this regard.

Simply put, they are asking people that don't have any money to pay them money before they (INDYMAC BANK) will do the RIGHT THING and work with their borrowers toward a mutually beneficial resolution to a mutually non-beneficial situation.

Does anyone out there know if any other banks are charging this fee? If so, how much? Also, if this is true, can someone please explain this logic to me? The "supervisor" told me that "someone has to pay the cost to them to work on these files." I don't know, but from where I stand, these lenders got themselves in trouble by making these loans and it makes absolutely no sense at all for them to expect that someone else will bail them out! Isn't that some kind of perverted sense of entitlement?

Confused and Dazed in Texas.

Short sale expert
Plano, Texas
U.S.A.

This report was posted on Ripoff Report on 11/09/2007 02:45 PM and is a permanent record located here: http://www.ripoffreport.com/r/Indymac-Bank/nationwide/Indymac-Bank-SUBPRIME-LENDER-WHO-CHARGES-HOMEOWNERS-300-TO-REVIEW-THEIR-FILE-WHEN-THEY-CA-283938. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 5Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

Response to Rebuttal "Why should ANY bank do it for free?"

AUTHOR: Short Sale Expert - (U.S.A.)

Why shouldn't they do it for free? They (IndyMac) are going to be able to minimize their loss on the loan by discounting the payoff vs. having the costs and expenses related to a foreclosure? How about the fact that NO OTHER LENDER charges their CUSTOMERS to work with them toward and equitable and mutually beneficial solution to a bad situation? THEY (the lenders) are the ones who invented the workout/short payoff in order to minimize their losses.

Also, I believe that the subprime lenders are largely culpable for the crisis in the mortgage lending industry that is going on today resulting in a loss of property value for all homeowners. Why would they want to do even more damage to their reputations by kicking the proverbial dog while it is down? Yeah, that will improve the public's opinion and bring TONS of new borrowers.

When you consider the average 20% discount most of the lenders are having to take on their payoffs because of the lowered property values which are a direct result of their predatory lending practices, $300 just seems like another way of sticking it to their customers.

Did you know that FHA borrowers are offered a $1000 INCENTIVE to close on a bank-approved short sale rather than walk away and allow foreclosure? Yep, they want to motivate their borrowers to help mitigate their (the bank's) losses.

Still Dazed and Confused in Texas
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#2 Consumer Suggestion

Why should ANY bank do this "review for short sale" for free?

AUTHOR: Steve - (U.S.A.)

The seller is in default of the mortgage. Not IndyMac.

I don't work for/with IndyMac, but I am in the mortgage business and familiar with short sales and the associated financing of these deals.

Consider that many lenders all ready have way too many loans currently in default and projected to default in the next 24 months. Indymac, and really any other bank with REO properties is going to scrutinize every short sale, or new loan.

These short sales and foreclosure bailouts are frequently full of ownership fraud, loan fraud, straw man purchases, and non-arms length transactions. The bank is protecting itself and its shareholders from financial loss AND .....

taking appropriate action with their policies to ensure that they will have money to give those homeowners who are reasonable credit risks.

Like Me.

Thank you IndyMac.
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#3 Consumer Suggestion

Why should ANY bank do this "review for short sale" for free?

AUTHOR: Steve - (U.S.A.)

The seller is in default of the mortgage. Not IndyMac.

I don't work for/with IndyMac, but I am in the mortgage business and familiar with short sales and the associated financing of these deals.

Consider that many lenders all ready have way too many loans currently in default and projected to default in the next 24 months. Indymac, and really any other bank with REO properties is going to scrutinize every short sale, or new loan.

These short sales and foreclosure bailouts are frequently full of ownership fraud, loan fraud, straw man purchases, and non-arms length transactions. The bank is protecting itself and its shareholders from financial loss AND .....

taking appropriate action with their policies to ensure that they will have money to give those homeowners who are reasonable credit risks.

Like Me.

Thank you IndyMac.
Respond to this report!
What's this?

#4 Consumer Suggestion

Why should ANY bank do this "review for short sale" for free?

AUTHOR: Steve - (U.S.A.)

The seller is in default of the mortgage. Not IndyMac.

I don't work for/with IndyMac, but I am in the mortgage business and familiar with short sales and the associated financing of these deals.

Consider that many lenders all ready have way too many loans currently in default and projected to default in the next 24 months. Indymac, and really any other bank with REO properties is going to scrutinize every short sale, or new loan.

These short sales and foreclosure bailouts are frequently full of ownership fraud, loan fraud, straw man purchases, and non-arms length transactions. The bank is protecting itself and its shareholders from financial loss AND .....

taking appropriate action with their policies to ensure that they will have money to give those homeowners who are reasonable credit risks.

Like Me.

Thank you IndyMac.
Respond to this report!
What's this?

#5 Consumer Suggestion

Why should ANY bank do this "review for short sale" for free?

AUTHOR: Steve - (U.S.A.)

The seller is in default of the mortgage. Not IndyMac.

I don't work for/with IndyMac, but I am in the mortgage business and familiar with short sales and the associated financing of these deals.

Consider that many lenders all ready have way too many loans currently in default and projected to default in the next 24 months. Indymac, and really any other bank with REO properties is going to scrutinize every short sale, or new loan.

These short sales and foreclosure bailouts are frequently full of ownership fraud, loan fraud, straw man purchases, and non-arms length transactions. The bank is protecting itself and its shareholders from financial loss AND .....

taking appropriate action with their policies to ensure that they will have money to give those homeowners who are reasonable credit risks.

Like Me.

Thank you IndyMac.
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