Andrew Pollack's Blog

Technology, Family, Entertainment, Politics, and Random Noise

IndyMac bank failure - Does this mean my mortgage payments are over?

By Andrew Pollack on 07/12/2008 at 04:35 PM EDT

I realize the news reports all seem to make it look as though these failing financial institutions were all spending their time defrauding each other and their investors, bilking innocent unwed mothers out of their savings, and stealing houses. Clearly that doesn't tell the whole story, because our experience with IndyMac has been positive.

I can't speak for anyone else but I can say that my own mortgage is a very normal "Fixed Rate" that is quite low and has no unusual fees associated with it. When we added on to the house, IndyMac was very easy to work with. They established a construction loan that automatically rolled over into a normal mortgage as the work was completed. The rate was excellent, and was competitive with any local bank for both the construction loan and the mortgage -- but they were the most flexible in making it a one step process.

There wasn't anything strange about the financing either. At the time we did the work, we had a professional assess the value of the house based on completion of the planned work so that we knew in advance we wouldn't be taking out a loan worth anywhere close to being more than the value of the house. Its been six years now, and the value of the house has gone up even as the debt we have on it has gone down. Barbara handles the home finances (she is an accountant after all) and has always put extra money into the monthly payment so that we're now much further along toward paying off the house than we would otherwise be.

Today we read that the bank has failed and been taken over by the FDIC. The Federal Depository Insurance Corporation is a quasi-governmental agency that protects depositors assets. If you had money in an account with IndyMac, the FDIC guarantees up to $100,000 of it.

I don't have money in an account at IndyMac. I owe them money. It is the only significant debt that Barb & I have -- our home mortgage. Do I get to stop paying them? Of course not. The instructions at the FDIC's site indicate that we should simply keep making payments as usual. I'm sure at some point our mortgage will be transferred and managed by some other financial institution. I would be surprised if IndyMac even still owns the actual loan. More than likely they've been servicing it for someone else for some time.

There are  - loading -  comments....

re: IndyMac bank failure - Does this mean my mortgage payments are over?By Danny Lawrence on 07/13/2008 at 11:05 PM EDT
Just keep making payments, but make sure you have some way to verify that your
payments were recieved, I'd use paper checks as opposed to some kind of EFT (a
paper check is stamped as it goes through the system and you can see the path
it took -- EFT's can get lost or end up in the wrong account, especially in a
situation like this. Eventually your mortgage will be taken over by another
bank, and you may need prove that you made all the payments you said you did
re: IndyMac bank failure - Does this mean my mortgage payments are over?By patrick m. krusto on 07/29/2008 at 07:10 PM EDT
1. should i continue my auto debits to my morgages?
2. i have had a fire in one of my apartments, i should recieve a check for x
amount, the problem is, the check will be made out to indymac bank and myself.
i cannot find out who to send this check to
to be signed and returned to me to make the repairs to the apt unit, any help
will be appreciated.
thank you
re: IndyMac bank failure - Does this mean my mortgage payments are over?By M.Raja on 12/31/2008 at 01:35 AM EST
We are victim of abusive,unlawful and predatory lending practices of
IndyMac.The bank failed to work with us from 12/2007 to 12/2008 and kept us in
dark and did not provide the reason as required by ECOA.The bank tells us
something else and does some thing else.We do not let them go for the crisis
they created and butchered us by the yield spread premiums. The bank has
violated TILA and other federal and state laws.
Interesting...By Andrew Pollack on 12/31/2008 at 10:58 AM EST
That's interesting, M.Raja -- You're tossing around some heavy duty
accusations there.

Do you have a web page set up somewhere that details your charges? It is hard
to make heads or tails out of a complex situation that you have only a few
sentences to describe in a blog comment.
re: IndyMac bank failure - Does this mean my mortgage payments are over?By RamD on 02/24/2009 at 05:46 PM EST
IndyMac is one of the worst banks I ever dealt with! I have been trying to work
with this bank for over 6 months to get the Loan Modification or at least fix
the interest rate (I have their infamous Flex Rate program that their Loan
officers literally thrust upon me, with promises like, you can get out anytime,
at no cost!

They keep telling me that I have 'insufficient income' to do anything. I keep
paying the mortgage each month, without fail. By modifying the loan, the
payment is not going to change, and the morons at the bank do not seem to
realize that!!
re: IndyMac bank failure - Does this mean my mortgage payments are over?By Kristie on 08/10/2009 at 10:18 PM EDT
How about refinancing 10/20/08 and having hazard insurance taken from payout at
closing,again on 11/20/08 and again on 5/15/09. Thats is three insurance
payments in 7 months and no one at IMB can tell me why my money from escrow is
over paying on insurance nor can they tell me how to get my money back into
escrow. All they can tell me is that my mortgage is going uo seventy dollars a
month immediately because i do not have enough in my escrow account to cover my
insurance which is due 11/20/09, which will make it four duplicate payments in
one year. Any suggestions anyone? Lawyers welcome! HELP
re: IndyMac bank failure - Does this mean my mortgage payments are over?By Minnie May on 06/22/2011 at 07:32 AM EDT
My husband has filed bankrupsy on our Indymac Loan. How long do I have to stay
in my home.
re: IndyMac bank failure - Does this mean my mortgage payments are over?By Andrew Pollack on 06/22/2011 at 10:46 AM EDT
You are replying to a 3 year old article written by someone totally
unaffiliated with the bank. I certainly have no advice to give you here,
other than to suggest you ask your lawyer. Sometimes you can go through that
process and keep your home. There are many things that affect this and only
your lawyer can tell you where you stand.

Other Recent Stories...

  1. 01/26/2023Better Running VirtualBox or VMWARE Virtual Machines on Windows 10+ Forgive me, Reader, for I have sinned. I has been nearly 3 years since my last blog entry. The truth is, I haven't had much to say that was worthy of more than a basic social media post -- until today. For my current work, I was assigned a new laptop. It's a real powerhouse machine with 14 processor cores and 64 gigs of ram. It should be perfect for running my development environment in a virtual machine, but it wasn't. VirtualBox was barely starting, and no matter how many features I turned off, it could ...... 
  2. 04/04/2020How many Ventilators for the price of those tanks the Pentagon didn't even want?This goes WAY beyond Trump or Obama. This is decades of poor planning and poor use of funds. Certainly it should have been addressed in the Trump, Obama, Bush, Clinton, Bush, and Reagan administrations -- all of which were well aware of the implications of a pandemic. I want a military prepared to help us, not just hurt other people. As an American I expect that with the ridiculous funding of our military might, we are prepared for damn near everything. Not just killing people and breaking things, but ...... 
  3. 01/28/2020Copyright Troll WarningThere's a copyright troll firm that has automated reverse-image searches and goes around looking for any posted images that they can make a quick copyright claim on. This is not quite a scam because it's technically legal, but it's run very much like a scam. This company works with a few "clients" that have vast repositories of copyrighted images. The trolls do a reverse web search on those images looking for hits. When they find one on a site that looks like someone they can scare, they work it like ...... 
  4. 03/26/2019Undestanding how OAUTH scopes will bring the concept of APPS to your Domino server 
  5. 02/05/2019Toro Yard Equipment - Not really a premium brand as far as I am concerned 
  6. 10/08/2018Will you be at the NYC Launch Event for HCL Domino v10 -- Find me! 
  7. 09/04/2018With two big projects on hold, I suddenly find myself very available for new short and long term projects.  
  8. 07/13/2018Who is HCL and why is it a good thing that they are now the ones behind Notes and Domino? 
  9. 03/21/2018Domino Apps on IOS is a Game Changer. Quit holding back. 
  10. 02/15/2018Andrew’s Proposed Gun Laws 
Click here for more articles.....

pen icon Comment Entry
Your Name
*Your Email
* Your email address is required, but not displayed.
Your thoughts....
Remember Me  

Please wait while your document is saved.