We all recall when IndyMac Bank failed. Well, if you don’t recall, trust me, the bank did fail. Not long thereafter, OneWest Financial purchased the assets of IndyMac from the FDIC. Apparently, the FDIC felt it important to give OneWest a near-guarantee that not only would it not fail, but would rake it extreme profits from mortgage assets acquired from IndyMac. See the video below for detail. And prepare to be outraged at how the U.S. Government set out to intentionally benefit and enrich the bank, and make all the modification buzz sound like mere smokescreens.
Click here for more details and to see consumer comments.
Do you really think OneWest is the only institution that stands to gain from foreclosing? NO !! When a bank wants to foreclose, the long delays we often hear about with loan modifications makes so much sense. The more mortgage payments the borrower misses. the more likely he/she will never get caught up if the loan modification request is ultimately denied.
If you are trying to get a loan modification or plan to do so, be prepared for a long, bumpy ride. Keep in mind, the bank does not “owe” you a modification. I tend to agree with that. But I am appalled by the hypocrisy and any ultimate attempt to take someone’s home under the guise of “working toward a modification.”
Borrowers should proceed with caution and solicit assistance from certified modification experts if possible. If your home is in New Jersey, let me remind you about New Jersey requirements for those offering loan modification services. Read about it here.
Until my next post . . .
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{ 9 comments… read them below or add one }
i figured this was going on all the time. this is america and big money at its best. all they care about is making the rich richer. and obviously the govt could give a $%#@ whether we know about it or not.
yeh, pisses me off
I tried 2 get loan modified when IndiMac was my bank. They played games for months months & kept asking me for stuff. Then I lost my job & was collecting unemployment for a while. They asked for paystubs & when they saw I was unemployed, the modification was quickly denied. As soon as it was to their benefit, suddenly everything came together, they found all the paperwork and said no. Before that, they acted like they didn’t know an ass from a flower. It was total bullshit. We ended up going to foreclosure & borrowing from 401k to reinstate loan.
This is just like all the other deals with Wall Street and big business. Bail them out and enrich them with stupid money while Americans bite all their bullets. I find this more disturbing than anything I’ve heard about since the recession began. I don’t have a home or a mortgage, but things like this is why hard-working people do lose it and go postal. I so understand.
pissed off is putting it much too mildly. no way this should be legal. but as i say all the time, we keep putting up whatever they throw at us. years ago, we had people like Ralph Nadar championing for the rights of the people and going up against the system about bullshit like this. but now, we just hear a story on the news & complain for a few minutes or a few days & we then just accept it – no matter how ridiculous it is, no matter how much we get ripped off by the rich & powerful. it’s crazy
That was a good share Carol. I’m more than astounded too. It makes me real angry as someone already said. I was searching for info about loan modifications when I came across a lot of negative about it. I guess if I get one when we apply, I should consider us very lucky. Not going to count on it at all. Funny thing is, when I hear about loan modifications on the news, they make it sound so simple. Like it’s almost automatic. What a joke.
Everybody who’s surprised raise your hand. Nothing in the news about what greedy, criminal politicians and corporate execs do surprises me any more.
We started a loan modification with Onewest. It was denied after a long 10 months. We tried to do a short sale for $210,000 but couldn’t get the ok. A buyer was waiting. We eventually were foreclosed on. Later found new owners got our home for $199,000. We could not understand why the sale we had wouldn’t have made more sense. Maybe they had an incentive from FDIC to sell for less to beef up to that $2 bil loss figure they need. What’s awful about this is that whatever deal Onewest got from FDIC, whether it was designed to screw the homeowner or not, it seems no one in the planning process cared to stop and think how the plan would affect the homeowner. It was all about the guaranteed success and profit for OneWest.
makes me wanna puke — on the bank of course