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Indy Mac Bank / Construction to Permanant Loan Conversion

1 United States Review updated:

My wife and I contracted with Indy Mac Bank in October of 2007 to finance our New Home Construction in SE Pennsylvania. At the settlement table, which was delayed for approx. trying to sift through rates, etc... we were promised a 30 year fixed rate, one percentage point higher than the current market rate at the time of the conversion to the permanant mortagage. We never received the paper work confirming our verbal offer with the representative of Indy Mac Bank in Atlanta. We selected Indy Mac Bank because we would only go through closing and settlement one time...

Now that our home is fully constructed and completed, Indy Mac Bank is only offering us a 5/1 ARM @ 9.125% or 6.75% for the first year and then a monthly adjustable rate for the remaining 29 years, which is totally unacceptable. The bank is either forcing us to re-finance or their plan is to try and take our New Home as asset.

We are currently looking for other Indy Mac Bank customers with the same issues in the hope that we can file a class action lawsuit against the bank for their missrepresentation and fraudulant practices in the Construction to Permanant Departments.

Please respond to our complaint if you are experencing similiar problems with Indy Mac Bank and want to make your stand as we do.

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Comments

  • Sh
      20th of Aug, 2008
    0 Votes

    We closed on a construction loan for a cabin in Parks, Az in January 2008 with promises of no fees to go permanent. Now we are being offered a high, non fixed rate and I am furious because I must go permanent then go with another lender. Not fair.

  • So
      30th of Aug, 2008
    0 Votes

    Does anyone have any information on how to file either a class action lawsuit or a personal one aganist Indymac Bank on a mortgage loan? Please let me know if any has this information. e-mail me @ sofiaejohnson@hotmail.com I would appreciate any information that you can give me.

  • He
      9th of Sep, 2008
    0 Votes

    We were promised all of the options available to new clients 30 year fixed included. The broker mislead us and everything changed at closed from what he represented in the past. We were ready to lose our land and had to go through with it because they strung us along for a long time. When we were ready to change to permanent they said we could only have two options 5/1 arm over 9% and interest only for 5 years. We could not afford the mortgage arm at such a high rate and had to do interst only. We just want what was promised a 30 fixed at a decent rate. We were told they would basically match anyone else's rate for permanent. They lied. We need help too.

  • Ma
      29th of Sep, 2008
    0 Votes

    We are also in the middle of building a new home and after reading this decided to look further into our loan. In our closing papers signed for the one time closing it clearly states our interest rate and terms (30 year fixed @ 6.75 % ) . This paper has been signed by all parties and notarized. This is actually stated in more than one area throughout our paperwork. If there is any problems during loan conversion we are well prepared to fight for our loan terms. Check through all your closing papers to see if your terms are anywhere to be found. The paperwork from our closing is quite clear on our terms, and we even had to sign papers saying we received and were explained our terms pursuant to federal and state laws. This might be something to look into if you did not sign these papers. Best of luck to all involved.

  • Wi
      3rd of Oct, 2008
    0 Votes

    We were also forced into an ARM at our construction to permanent closing, despite a verbal agreement that we would be given a 30 yr fixed rate of 6.25%. At the time of closing they offered a choice between a 5 yr 5.25% ARM and a 7.5% fixed, the payment was much more than we could afford at 7.5% so we had no choice. They increased our interest rate to 8.125% in Sept. 07. but have sinced lowered it. Its no wonder they filed bankruptcy with this type of business fraud. We would be willing to participate with the class action?

  • Ph
      7th of Nov, 2008
    0 Votes

    I have a huge problem with Indymac and would love to get involved in a suit against them. My complaint is in the nature of fraudulent appraisals and predatory lending practices. Can you offer any info. I'm about to lose my home. I live with my wife and 4 kids and it would be a real sin. Thanks,
    Phil

  • Mg
      16th of Dec, 2008
    0 Votes

    I have a huge problem with Indy Mac bank and would love to get involved in a suit against them. My complaint is that in January of 2008 I called and call them to see if they would be able to modify our home loan (over 3 years ago we where told that the best loan for us was the ARM and that for the next 3 years it would stay the same) they where wrong we have been the victims of predatory lending practices. One employee of Indy Mac bank in January 2008 said that unless we where 3 months behind they would not even speak to us about modifying the loan. I did just that and held on to the money. Than when I was getting worry we signed up with a Company that said they would work on our behalf to get the loan Modified. In August of 2008 Indy Mac bank send us paper work that stated we could not modify the loan for more than 3 years. Here we are December 2008 and my home is ready to be sold all because Indy Mac bank and the 3rd part company that said was working on our behalf put us in a loan they knew would not work for us and than offered a 3 year Mod and now is saying no Indy Mac is stating that the investor does not want to Modify the loan. A law needs to be passed if borrowers make an effort to pay they should help. We have never told them we would not pay us just want INDY MAC BANK to honor what they offered back in August of 2008 but for a longer term. Can anyone out there offer any help. It is Christmas and we have been told our home will sell on December 26 the 2008. I live with my Husband and 4 kids can anyone help us. If so please email me at savemyhome95@yahoo.com. Thank You Maria

    How can these companies do this when they themselves caused the mess but yet they can be bailed out by the Government? The Government should say NO to them?

  • Ke
      16th of Feb, 2009
    0 Votes

    I am in the same situation of getting a construction to permanent owner builder loan in summer of 07, then summer of 08 the promise of the fixed rate option was not there, and had to immediately refinance and lost that money. i have been looking to join one of the class actions, but have not been able to find one for construction loans. I can be contacted at kjboggs@gmail.com.

  • Kc
      30th of Mar, 2009
    0 Votes

    We are in the exact same predicament but thought we were alone. We entered a construction to perm loan in December 06 with Indymac but were verbally promised throughout the entire application process the opportunity to enter a fixed 30 year loan when the rollover to permanent loan time period approached. We delayed the initial closing when the paperwork finally got to the title company because of the changes in the terms from what the Indymac representative had told us throughout the application process regarding a loan at construction completion. The broker at the Indymac in Atlanta office verbally told us that essentially the paperwork was just for paperwork purposes and when construction was completed we could choose our loan product then.
    When construction was finally completed and we contacted Indymac to rollover to perm, we were told they had no loan products for us except an ARM with 9.125% rate, a PI loan only/no taxes or insurance included and were required to purchase PMI and denied the re-appraisal opportunity we were verbally promised by several individuals at the bank. From Oct 07 to Jun 08 we were in constant contact and discussion with Indymac regarding the loan products they had and didn't have.
    We attempted for 9 months to have the loan refinanced, converted, modified..whatever it took to NOT get stuck in an ARM but in the end that is all they offered. While they were going through their collapse we ended up with more than one officer as several were laid off while we were trying to work with them..We tried to avoid refinancing with another lender as we had paid for a construction to permanent loan already and would lose a substantial amount of money. Now we stand to lose too much with this loan and are looking for attorney assistance to fight what has happened. Now we are attempting to refinance with someone else altogether.

  • Ch
      21st of Apr, 2009
    0 Votes

    I am a an IndyMac Bank customer, My complaint is that I opted out of escrowing my taxes and insurance. They are trying to escrow
    my taxes and insurance which is causing a shortage on my house payment each month, They are now saying I owe them $4000.00
    in mortgage payment shortages. I cannot get anyone to work with me on this problem.I sometimes feel like no one there knows what they are doing.

  • Am
      15th of May, 2009
    0 Votes

    Same thing for me. Construction loan with a promise to convert to a 30 year fixed. Near the end of the project Indy Mac contact me and pressured to finish or else face fines. Went out of pocket to finish (in order to pass inspection) and then went to convert the loan. I was told that my ONLY option was a 5 year fixed at 6.87 then going to adjustable. I am paying my own taxes and insurance. How can they do that. The market was falling, I was upside down and they knew I had no where else to go...

  • Ma
      5th of Jun, 2009
    0 Votes

    You are right there is noone there that knows what they are doing, one story after another, lie after lie. All I want is my ex husband's name off the note it's not on the mortgage or deed. Noone there knows the legal department's number they want paperwork sent to delay addressing the problem. They say they will make the changes if I refinance at a higher rate and pay fees or if my ex husband is nolonger living. They will not send me a copy of the original note, where is it does it exist or is missing paperwork the game they play to force you into a higher rate? Complaining to the State attorney general.

  • Ja
      8th of Jun, 2009
    0 Votes

    I am in the same situation with my construction loan. When my loan went to roll to a permanent I was charged well above the market rate. I have a permanent loan at 7% when rates were at 5.25 back in November 2008. I wrote the FDIC because the bank was in receivership by they did not reply until the bank was sold. I have been trying to a loan modification so they can adjust my rate to market. They just wrote me back with a lie saying that I was offered several rate options. I am really disappointed and would like to keep my home but they are making it where it isn't affordable. What are others doing about this.

  • Da
      11th of Aug, 2009
    0 Votes

    I too am having problems with IMB. I had a home built by a contractor without a license. When the home was completed and IMB signed off the home was built extremely poor. I had no idea the contract was not licensed and IMB said it was my responsibility. When I went to IMB to find out why they signed off they told me it was to late to go against the builder because I had already converted the home to permanent financing. 6 months later the home was upside down in what I owed and I had lost my job. IMB would not work with me on modification unless I was 60 days past due. After two years of fighting with them I finally stopped payments for 60 days so they would modify. IMB turned me down for a modification telling me it was the investors choice to modify that IMB simply maintains the loan for the investor and they could not even tell me why I was turned down. I could not catch up on payments so now they are forclosing. I have a sell date of Oct. 09. IMB won't even consider a short sell because they don't have to. IT is to their investors advantage to let the bank take it back and sell afterward because the house has PMI that will pay them 20% of the loan balance back to them. I know of at least 4 other borrowers in Lake Havasu City, AZ, wher I live, that are in the same boat as I am. IMB says they don't have to cooperate with the Obama plan as none of their loans are Freddie mac or Fannie Mae thay are all private companys with prvt investors. I did sue the contractor but he has gone belly up and now I am losing my home and all I have put into it. IMB put me on a interest only loan for 10 years so nothing has gone toward principle in over 2 years. If anyone out there knows of an attorney that will take on IMB please let me know. IMB made loans without even looking to see who they were making loans with. Not once did they ever look out for their borrower, only themselves. I know my loan was fraudulent and the fees excessive but I did not know until I sued the builder. This too is IMB fault and they should be forced to reduce their loan. Anyone out there who can help would love to hear from you at daw8534@yahoo.com.

  • Bk
      19th of Nov, 2009
    0 Votes

    I was also forced into an ARM. having been in banking for over 20 years and being at retirement age getting an ARM loan is like playing Russian Roulette with 4 bullets in the chamber. IMB loan office and I had many connversations about the perm loan after construction.
    Has anyone been able to litigate this issus. My name is Bob. my email is icfbob@msn.com

  • Bk
      19th of Nov, 2009
    0 Votes

    I too can not get a loan mod. IMB is playing hard ball. My wife passed away and the sky fell in on me. They sent me a loan mod and then took it away. It appears they are wanting to take over property and sell it at a profit. They are not willing to work with people, even though they got our tax dollars to start up again.

  • Yu
      15th of Jan, 2010
    0 Votes

    We had the exact thing happen to us. When we were done with our construction, Indymac advised us that we can either take 11% fixed or do a monthly variable rate. They said that they changed their policies since they told me they would do a low fixed rate. They won't work with my modification papers and just served me with foreclosure papers. When is the class action suit coming? I am desperate. I have three kids under four. Where do I go from here?

  • Th
      19th of Feb, 2010
    0 Votes

    I was contacted by IndyMac in 2006 while I was deployed to Afghanistan thru email to receive a construction loan. I went ahead with the loan being told at the beginning of the process that I would roll to a permanent fixed loan of 5 percent when the home was finished with a one-time closing. During the entire building process the funding for the home was delayed each and every time. Sometimes inspectors who I had arranged to meet with never showed up and inspections were sent in that I know never happened. When it was time to close to the fixed 15 to 30 year loan I was told that I had gone past the construction time line and that my loan was changed to a 7.2 LIBOR making the payment go from $2100 to well over $3600 a month. I refused to close unless I was offered the rate they stated. Today, IndyMac Bank under the auspicious of One West Bank are foreclosing on my home. I refuse to be lied to and pay for a contract I did not agree too. I read through the original loan paperwork and at the closing for the construction loan the loan officer said that rate I was looking at when I signed was the monthly construction loan rate not my final closing rate. I have contacted the law offices of Morgan and Morgan in Orlando who are looking at my case. Please give them a call and tell them that you want to join in as a member of my lawsuit. I have copies of every email that I have sent or received from IndyMac. I have been lied to, payments stalled, scream at by their representatives, charged $53, 000 in interest as well as late fees because I refuse to support a lie that they made. Any help would be greatly appreciated. Military Member. tali.hillsgrove@us.army.mil

  • Fe
      11th of Mar, 2010
    0 Votes

    I have a new home in Ca that my construction loan funds were frozen when the FDIC took over IMB. My house was near completion so I was able to use all my personal funds to get a final. My loan term has expired but I have continued paying interest payments per the loan agreement. So far nothing has been offered to me, but I'm fearful what they offer will be more than we agreed on so for now I just continue to make my monthly interest payments. Has anyone had a success story??.

  • Dm
      2nd of Jun, 2010
    0 Votes

    Like so many of you, I have been struggling with an IndyMac Construction to permanent loan for over the past year. Since they were taken over by One West, it has become increasinly difficult to get satisfaction. Due to their delay in releasing funds and my husband being without work for a year, we were unable to complete to 100%. Their construction department told us it could convert at 95% and we were able to do that much and get a certificate of occupancy. Again they are saying that we went beyond the original end date and that they don't have to honor the original mortgage document. I've been paying interest only for over a year while they came up with something to offer me. I received it via UPS last Friday. They want to offer me a 3 year balloon loan. The modification papers will rescind the mortgage that was originally filed in June 2007, making me a lessee of the house I built. I don't want to sign the papers, which release the bank and the FDIC (which I assume is allowing these modifications to occur) from liability. I don't want to sign these papers, but my funds are depleted and my credit is now shot. Has anyone had success fighting these bullies?

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