If You Have an Option ARM Loan with FDIC IndyMac, Read This!

Paul Kiesel
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Posted by Paul KieselOctober 10, 2008 9:47 PM

Any Californian who has a Pay Option ARM loan from IndyMac (now FDIC IndyMac) that was originated between 2004 and 2007 and has faced or will be facing an interest rate reset (ballooned monthly payment), should contact the bank or seek legal counsel before next Friday, October 14.

According to the FDIC, Option ARM borrowers have 90 days to respond to the notice of IndyMac being taken over by the federal government, if they want to be able to modify their loan or take legal action against IndyMac. When does the 90 day period end? October 14. Where did the notice come from? The FDIC claims that when newspapers reported that the Office of Thrift Supervision transferred control of IndyMac to the FDIC, on July 11, the newspaper articles throughout the State of California served as a notice to the public.

However, most borrowers of Option ARM loans never got a formal notice. Regarding this issue, the only notices that have been sent out are to named plaintiffs in class action lawsuits against IndyMac Bancorp. In fact, the FDIC has refused to notify other Californian consumers of Option ARM loans that their time to take action is running out, and this is a big problem because tens of thousands of Option ARM borrowers have been left in the dark and do not realize that the date is rapidly approaching for them to seek a fair remedy to their troubled mortgage situation (or pending situation).

The FDIC has a contact number listed on their website under the page titled: FDIC Loan Modification Program for Distressed IndyMac Mortgage Loans. On the bottom of this page it states: Borrowers who are delinquent or who are experiencing financial hardship and are falling behind on their IndyMac Federal mortgage should call 1-800-781-7399 to speak with an IndyMac Federal customer service representative.

10 Comments

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Johns
Posted by Johns
October 13, 2008 12:01 PM

Good luck with the phone number! I lost my house to Indymac Bank and all the crooks that work there. I phoned for months, numerous e-mails, letters. Each time you have to speak with someone different, each time I got a different answer, mailed in forms that they sent to me (hardship information sheet) only to find out months down the road that they were put in a "dead box"???? Was one month behind on mortgage payment and recieved a note on my door that the locks were going to be changed and my home winterized, this was thru a company that works for Indymac Bank called "Fidelity Information Services", phone number (440) 424-0045. I could go on and on about Indymac Bank and how they led people to bankruptcy. I have all my letters and information, threats and whatever this company did to me. I am now trying to find an Attorney who lives in the state of Arizona that can help me with fighting back on this horrible bank.

Nancy Filippi
Posted by Nancy Filippi
October 13, 2008 3:19 PM

IndyMac did the exact same thing to me! I tried for months to find someone to talk to. I HAD an 850 credit score and they told me they couldn't help me without even looking into a re-finance for me. They used Fidelity and locked up the house. I tried to contact Fidelity and they never anwer the phone or call back. IndyMac is packed full of liars and cheats. I finally moved and stopped paying them. That was ten months ago and they won't agree to a deed in lieu and they haven't begun an foreclosure proceedings. What can we do??

No Name
Posted by No Name
October 13, 2008 4:17 PM

These post are absolutely wrong. Not once have a seen a foreclosure for a borrower that didnt deserve it. Contray to popular belief it is illegal to just foreclose on a property. So you probably couldnt afford the home you got and you knew that when you got it. So suck it up and be renters for awhile.

Johns
Posted by Johns
October 13, 2008 6:06 PM

To Mr. No Name..you have no idea what you are talking about so keep off this post until you do. You probably don't own a thing yourself and have nothing better to do then write stupid stuff on websites. What are you doing on Indymac's lawsuit website?? Get a life and shut up with your stupid comments that you have no facts to back them up. IDIOT!!!

Abby
Posted by Abby
October 13, 2008 6:18 PM

Mr. No Name: First of all you need to learn how to spell and use proper ENGLISH. From what I am reading you do not have the level of schooling to even know what a contract is and what it consists of. I agree with the other person. Mind your own business! I am sure you are a renter. You state you have NEVER seen a bank that has foreclosed when someone was making the payment. You must not know how to read either or you would see what these people are asking. Like you have the in's with so many banks. PLEASE go away.

no name 2
Posted by no name 2
October 14, 2008 11:39 AM

i agree with no name!

Tammy
Posted by Tammy
October 15, 2008 1:25 PM

In 2004 my husband took out an ARM loan from Indy Mac (was in his name only). In 2007 my husband died in a boating accident, with no medical or life insurance I was left with a mortgage that jumped from $750 to $1270 in 1 month and medical bills piling up over $100,000. this is the messed up part, I cannot re-finance for a reasonable interest rate due to wage to debt ratio. If only my husband wouldv've read the fine print before signing with Indy for the ARM, that in 5 years your house payment will double!!!!! And even though I've made all the mortgage payments since his death in 2007 they don't want to talk to me because my name wasn't on the contract. Where's the morality?

whatever
Posted by whatever
October 18, 2008 12:50 AM

ok...the mortgage servicer (most likely indymac) is not the investor on your loan....the investor is probably lehman bros,aurora,fannie or freddie or countrywide or any of a number of others. indymac SERVICES a number of loans for OTHER investors. they can only go by the guidelines/rules THEY impose. so when you call up IMB don't be so quick to blame them; i have dealt with them as well and i also got a subprime negative amoritization loan and all i can do is blame myself for not educating myself on how those work. everybody's property is declining in value nowadays; but i also realize that not everybody is deserving of a loan modification....i don't want to clog up the system by asking for a mod when i have a surplus in my income when there are people who are in sincere need of help because of hardship (sickness,unemployment and then getting a new job, etc). get real people. just because our property value is down right now doesn't entitle us to a lower payment....would we want indymac to come after us if our property values increased and expect a higher payment then??? NOOOO!! then i think those of us who can still afford our payments should pay them; i have friends who have the above hardships and i wouldn't cut in line ahead of them and ask for a mod just because my 500k house is now valued at 400k...think people!!!! don't expect to get your way every time.

Flip
Posted by Flip
October 19, 2008 11:51 PM

Hey whatever, I bought my house for 775,000 in 2005. My mortgage went up significantly. My house now only valued at 470,000, I had 100% financing. Refi is out a question. Is it still a good idea to force myself to work more hours everyday just to keep the house? Indymac said they could not help me unless my mortgage is on a default status. Any stupid idea?

Victoria
Posted by Victoria
October 22, 2008 2:26 PM

Let me tell you about IndyMac Federal Bank. I was behind on my mortgage, due to my business failing because of the economy, and my husband down to 2-3 days of work. He is in the construction business, need I say more? I have a negative amortization loan on my home, tried to get a Loan Modification through Indymac. I sent all the requested financial information to them, and they said they would contact me. After two weeks, and not hearing a word, I called them to make a payment. I asked them the status of my Loan Modification, and told them I sent all the financial information in to them already. They said they weren't doing it like that anymore, and to just give them the household income, which I did. They said I would hear back from them in about 2 weeks with their decision. Not a word! So, I called them again. IndyMac Federal Bank would not help me. Said they weren't giving Loan Modifications to negative amortization loans. Said they were in the process of negotiating with Deutche Bank, who is the investor on my loan, to try to get a plan worked out to offer a Loan Modification. I was told to call back in 2-3 weeks, to see if a Loan Modification could be put in place for my type of loan. They did inform me they could still proceed with the Foreclosure against me. Where's the relief for Homeowners?

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