How will I be affected if I have an mortgage (98K) with INDYMAC and they went bankrupt?

Question

I have a 30-year fixed. This is only my 2nd year paying mortgage.

Is it correct to assume that I'll be transfered to a different lender, my current rate will remain the same?

Do you think I should do anything at the moment?

Answer 1

If it is transferred, and you have a fixed loan, nothing will change until the new mortgage company notifies you of where the file is going.

The only thing that will change is who you pay, and they have to give you a 60-day notice of when that is.

Pay as normal and do not change that based on anything you see in the paper...the must inform you personally in writing.

Answer 2

It would not affect you other than the loan would be acquired by another lender.  The terms would not change.

Answer 3

Your assumption is correct.  Your mortgage will be sold as part of the bankruptcy and you will continue as if nothing ever happened, except you will make you payments out to a new lender.  You have a contract which cannot be changed.  So you need not do anything.

In fact, it is not unusual for mortgages to change holder a few times during the term of a mortgage for many reasons.

Answer 4

They will continue to service your mortgage until they sell those rights (there is $ in mortgage servicing) to another company like CWide, Litton, Homeq, etc.

Nothing about your loan will change except:

1) taxes that the county may charge

2) your homeowners insurance rate

Best of luck!

Answer 5

Indymac will sell your loan to another servicer.  Nothing is allowed to be changed on the terms.  You should receive a letter from both Indymac and the new servicer.  You don't need to do anything at this time- there will still be people working at Indymac - they are only cutting 1/2 their staff so it's possible they may continue to service your loan.  Just keep an eye on your mail for any notices.

Answer 6

The FDIC seized the bank on F 07-11-2008 (eve) after the market was closed and everyone was home.

Reuters reports, this is the "2nd biggest bank failure in US history."



You could go to another bank right now, and try to refi the loan. The payments will keep going to Indymac (some FDIC trust).

Your mortgage terms will stay the same until the loan matures as contracted.

The FDIC has ONLY $53 billion insurance fund. That's a heck of a lot less capital than I thought.

The FDIC estimates they will have to shell out "between $4 billion and $8 billion" to make qualifying depositors whole.

http://www.reuters.com/article/gc06/idUS...

There is about 4% of Indymac depositors that will not be eligible for FDIC insurance.

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