What does this mean for people who have their mortgage with IndyMac?

Question

You need to see this article to understand the question

http://news.yahoo.com/s/ap/20080716/ap_on_bi_ge/mortgage_investigation

Answer 1

not a darn thing. Their loans will be sold to another service provider and they will pay some one else their payments. This is part of RESPA. Once a loan funds it is done and Now the fed has taken over it may be months before a new servicing company is named and its clients are sent a letter stating where to make payments. in the time being they make their payments to Iny Mac Federal Bank

Answer 2

It means that your loan will be sold off to another bank. Go to www.fdic.gov/bank/individual/failed/Indy...

This webpage is on the FDIC.gov's site.

Also be sure to make all your payments as usual.

SDGUY

Answer 3

Did you know that a half dozen people have asked the exact same question over the last hour?

Answer 4

A mortgage is a contract. The contract remains the same, no matter what happens. The loans will likely be sold and serviced by another company soon, but nothing regarding their mortgage will change at all.

Answer 5

All of the original terms of your loan still apply.  You still have all of the same rights and responsibilities.  As long as you are honoring the terms of your Trust Deed and Promissory Note, no one has the right to accelerate your loan or to initiate foreclosure proceedings.  

The one thing that might change?  Possibly the insitution that receives your monthly payments.  

On word of caution:  If you receive notification that your payment should be made out to any institution other than IndyMac, then make sure that you verify this through IndyMac before you start sending off payments to some unknown stranger.  A lot of people get scammed via this method.

The good news?  You keep your house.

The bad news?  You keep the loan too.

Answer 6

It is the bank in trouble not the borrowers.

However if the borrowers committed fraud, like fake info or appraisals they could be in for an investigation as well.

Answer 7

Nothing will change. Our gov't will prop up Indymac and all will continue.

Answer 8

For the most part nothing.  The loans are out there and as long as the loan holders pay the loan back they will be ok.  The fact that the Federal Government has taken over the bank will not affect most people.  

The investigation into the bank is into the owners of the bank who ok'ed the risky loans that the bank made.  It'll be  a little while yet till we see what has happened.

Answer 9

There are two sides to the answer to this question.

The first is that anyone who borrowed money and promised to repay it on a certain schedule is obliged to honor that commitment.  Most likely, a loan placed through Indymac was sold on Wall Street via Fannie Mae as part of a bundle of similar mortgages.  The borrower's promise to pay transferred along with this sale.

In any case, as the various pieces of Indymac are sold, the servicing rights they have held will be sold as well.  Borrowers are absolutely not off the hook for the financial promises that they made.

The other side to this question's answer comes from the question implied in the article:  "What if Indymac committed loan fraud when they made the loan to me?"

In certain cases, borrowers have the right to rescind their mortgages -- even years after they were put in place.  (Rescinding a loan means going back to where you were before the mortgage was put in place -- including a refunding to the borrower of all interest paid against the loan so far.)  The Truth in Lending Act provides for recission if the Truth in Lending Statement originally provided to you when you began the loan application process is far enough away from the actual closing figures.

Have a mortgage professional review the HUD and Truth in Lending Statement from your closing, and the Truth in Lending Statement provided to you at the outset of your loan application process.  If they're far enough apart, your attorney can help you rescind your loan -- but you'll need to have a new mortgage ready to take its place.

Answer 10

The only additional thing I would suggest is to make copies and records galore of every payment you make over the next several months...I had a friend who had her mortgage "sold" on the secondary market, which happens all the time.  However, she was sent a letter of demand at one point for over 15,000 in back mortgage payments, because they had no record of receiving them...Here, the previous bank kept them all....never forwarded.  It was HER responsibility to get all the records together & send them to the new mortgage company - they were threatening foreclosure for all that....and THAT was not even a bank that failed....