In a move that could be another big step in the right direction for struggling homeowners, the FDIC has announced a moratorium on foreclosures for IndyMac Bank loans. The FDIC took over the struggling bank a few weeks ago.
As part of the move, the FDIC has announced that loans will be modified to keep homeowners in their homes. IndyMac has a $15 billion loan portfolio.
Kudos to the FDIC.
Sheila Bair, the Chariperson of the FDIC, has stated that a modified loan is worth more than a foreclosure. When one combines this statement with the recent safe harbor added to TILA for loan servicers to modify loans, we may be moving towards real solutions for struggling homeowners: principal writedowns and rate reductions.
Do you foresee Indymac refusing offers to restructure loans? Essentially, would there be any instance where Indymac refuses someones offer to restructure?
Also, what about an 80/20 loan where 80 percent is with Indymac? What happens to the foreclosure process in this case?
Anyone with info, please email me - lookingglassme@gmail.com
It will be interesting to see if there is complete follow thru on this. Hopefully for the homeowners there is.
yes, I don't know if people know the FDIC $250,000 cap is good only until 10-1-09 and there is an underlying danger people need to be aware of. Also, if there is a bank failure, you have up to 18 months to apply for your funds, and the bank hands out the money in an orderly and methodical manner.
I posted an interesting article written by the former Chair of the FDIC on my blog....come on over and read it if interested. thanks, JH
I was just turned down for a restructure loan single mom with two kids deaf but working full time hospital ARM rate loan went up and overtime went down said I fell in a pool that didn't meet criteria so auction holds for 12/31/08 Happy New YEar kids