Free counseling Saturday for troubled IndyMac borrowers

When Pasadena's IndyMac Bank sent letters to 35,000 borrowers who had missed mortgage payments, offering a chance to rework the loan terms to make them affordable, it got an initial response from fewer than half the borrowers, as The Times reported Oct. 31.

The savings and loan, a specialist in "stated income" loans that was seized by federal regulators in July, is now hoping the borrowers will be more willing to talk over their options with loan counselors from nonprofit agencies.

IndyMac and the Federal Deposit Insurance Corp., which is now running the thrift, said today they are planning public sessions with such independent counselors for borrowers in the Los Angeles area and the Inland Empire. The counselors, including Spanish speakers, will be able to discuss IndyMac's aggressive effort to modify loans. IndyMac employees will be at the sessions as well to get the actual workout process rolling.

The first session, with counselors from the Neighborhood Housing Services of Los Angeles, is scheduled for 10 a.m. to 3 p.m. Saturday at the Van Nuys Civic Center, 6262 Van Nuys Blvd. The second will be in Riverside on Dec. 6.

To receive counseling, borrowers should bring paychecks or other documentation of their incomes, as well as documents itemizing their expenses and assets.

IndyMac spokesman Evan Wagner said the bank is mailing 4,000 invitations to this weekend's event to L.A. County borrowers who have missed mortgage payments. Borrowers who are current on their loans but are afraid of falling behind are welcome to discuss their situations as well, although their options are more limited, IndyMac said.

The modification program is designed to lower payments on first mortgages to 38% of borrowers' incomes by reducing interest rates, extending loan terms and, in some cases, charging zero interest on part of the loan balance.

Given the lack of documentation on typical IndyMac loans, it's probable that many borrowers are afraid of getting in trouble because their loan applications overstated their earnings. But Wagner said not to worry: "At this point, we don't care about that."

Borrowers unable to attend the sessions can obtain more information by calling (877) 908-HELP.   

-- E. Scott Reckard

       

   

Comments

[MyLessThanPrimeBeef]

"At this point, we don't care about that.'

Better ask your lawyer to check if they will care about it tomorrow.

[firesale]

Why respond at all? Just live in the place and make
them drag you all the way! These folks ain't even paying rent!
They're saving-up downpayments to buy another
foreclosed property at half of what they currently owe.
The shame is they will be able to do it.

We think far more about protecting the scum who brought
us this mess than the responsible American taxpayer
who now has to pay for it. Hell, it's far tougher getting
around auto smog laws in this state.

We need extreme creative muscle to bring these
people to the table. If you can print a trillion dollars
out of thin air then you can certainly have the IRS
garnish the wages of those who can not prove they
are involved in a restructing dialogue. Something
totally unrelated that yields the necessary result.

Let the Supreme Court overrule it... while they're
at it maybe they can check on the constitutionality
of everything else that's been rammed through
in the last six months. Taxation with representation.
In a pig's a-- !

[tew]

Nice to see a federally operated institution tell customers they don't care about committing federal crimes.

[Laker]

"...Given the lack of documentation on typical IndyMac loans, it's probable that many borrowers are afraid of getting in trouble because their loan applications overstated their earnings. But Wagner said not to worry: "At this point, we don't care about that...."

You can rob the bank or lie on the mortgage application that you signed - federal issue. But as Indymac aka FDIC are saying, there is nothing to worry about....

[Nelcisco]

What they ought to do is the stated people that now have to document their income, workout a deed-in-lieu because it'll show that their income won't sustain any kind of mortgage, it never could.

[sheila]

the truth is that most people who overstated income did it because IndyMac told them to, so they most definitely don't "care about that" since if that came up, they would have to face the kind of lawsuits/prosecutions that Countrywide faced and is still facing...

it is faaaaar cheaper for them to "voluntarily" work out these loans with the people they tricked into expensive ARMS than to be forced to compensate everyone for the frauds perpetrated on them. as noted, though, most people could not afford these properties anyhow, so it's mostly a dog and pony show...

[Loan]

"...Given the lack of documentation on typical IndyMac loans, it's probable that many borrowers are afraid of getting in trouble because their loan applications overstated their earnings. But Wagner said not to worry: "At this point, we don't care about that...."

How can they not care?

[Bring Back Debtors Prisons]

Counseling session 1.

How NOT to lie.

Counseling session 2.

How NOT to lie.

Counseling session 3.

How your daughter can help pay your LIARS loan by entering the porn industry.