Indymac / Predatory lending - Cold shoulder to refinance
IndyMac is a pro at giving cold shoulder to customers after mis-representing Neg-Am loans..
IndyMac puts it in writing that they will not entertain any requests or letters from you, if you write too many letters to them!!
The reason why USA is in this financial mess is because, financial institutions were not pro-active, and lacked total common-sense., and of course, GREED. Case in point: Modification Criteria: Lenders tell home owners to be delinquent before considering for a loan mod! When you already know their current fiscal situation, why goad them to be irresponsible and become delinquent? Why don’t you jump in and help them, at the right time. This prevents lot of hassles for both the parties, and boosts the economy.
Also, another criteria for IndyMac for a Loan Mod was: “Home must be owner occupied, and not an investment property or second home”. Now, a home is a home, whether it’s owner occupied, or a second home or an investment property. Isn’t it? It has a mortgage, and all the other requirements that an owner occupied home has! When IndyMac did not have problem refinancing the loan in 2005, knowing fully well that it was not an owner occupied property, what is the reason now? Doesn’t an investment property, or a second home contribute equally to the slump (or growth) in the economy?
Also, when IndyMac's representative (Loan Officer / Consultant) persuaded me to sign-up for a Neg-AM loan with sheer misrepresentation and falsification of facts in 2005, I was actually looking for a loan to consolidate my two loans on this property. (I was paying 4.25% -30 yr conventional) on the primary loan). I had explained to him that all I needed was consolidation at a rate better or equal to, than what I had. His enthusiastic comment was:
“ I can beat that. We have a great program going, and it won’t last long. Under this program, I will get you the total loan at 2%”! When I asked him, if it was one of those NegAm loans, he said, “sort of.. but not to worry. I will take care of this in a few months time. You just have to pay a very minimal pre-payment penalty. You can trust me! You don’t want to lose this opportunity!”
Trusting is what I did with him, and now you know where I am. I have not only refinanced this property, but also my primary residence. After learning later on that I was totally misguided, I refinanced my primary residence in a hurry with another lender, as I did not want to keep incurring neg-am on both the properties. No matter what I say will not be convincing re: misled, and misguided by IndyMac's greedy staff, as I signed the paper work, and accepted all the terms. As I represented in one of my earlier letters to Indymac Bank, the loan officer was totally misleading, not only to me, but to a few other references I gave him, with this type of loan. I am not absolving myself of my primary responsibility to read the documents thoroughly. It was my mistake, and I believe, I have paid for it heavily with the equity in my house for over 3 years.
If you look at my refinance application made in 2005, it would not look that I needed a NegAm loan? I had excellent credit scores, with stable and solid employment history, with more than adequate reserves, and a disciplined financial life. Would an honest loan officer and his superiors give a sub-prime loan to an applicant, considering the fact that I had a very good loan prior to getting caught in IndyMac’s clutches? If I was going through a broker, it would have made more sense that I got cheated. But, my reasoning behind going directly with the lender was : “ I am working with IndyMac directly, and why would they cheat me?
We all already know the reasons behind why properties are under water! Here, a consistently financially disciplined customer is requesting you to change the existing draconian loan to a conventional loan at the current rates, and you have the heart to say ‘No’, even after making all the money you did on this loan and many other similar loans, over the past several years? I simply do not get it! A customer is trying to prevent an asset from becoming toxic, and it seems you are bent on encouraging him to let it go and add more toxicity to the existing dump!
We all should be doing what we can, to turn this country around, and IndyMac, on the other hand, is promoting the existing problem, instead of working with the customers.
If IndyMac thinks outside the box, and refinances the loans at the current rates to a conventional one, the payment will still be about the same as the customers are currently paying! This way, you do not have one more foreclosed home on your hands, and we keep paying what we are currently paying now, albeit, with a sense of relief, that we have a traditional loan, and can sleep better knowing that IndyMac won’t come after us demanding to take over the house, as the mortgage amount is higher than the property value!
How it can resolved?
1. Loan Modification, to the current property value.
2. Change rate to current 30 year conventional.
3. Stop misrepresenting, and misleading.
4. Grow a heart!