Hi Folks,

This video pretty much sums up the problems with OneWest/IndyMac Bank, as well as any of the other 167 lenders (at last count) who currently under a loss share program with the FDIC.  

Why work with homeowners when you can get a check from the government for foreclosing?

Views: 590

Replies to This Discussion

This is extremely old news that I've heard about 100 times too many. It is also misleading and WAY overdramatized and sensationalized. Most lenders have loss share agreements with the FDIC. Its just a fact. When buying the unbelievably HUGE pool of loans that Indymac had owned, Onewest took the good with the bad. They SHOULD have some sort of "insurance policy" with this VERY high risk investment situation. They did all of us a favor to some degree. The fact that the value of the assets backing the loans has decreased dramatically since this deal happened AGES ago, further shows the need for this "insurance policy". Heck, without it, I'm sure Onewest would be in trouble by now. In addition, they must have at least 1,000,000,000 in loss before they can qualify for loss share if I remember correctly.

I see agents post this all the time and use try to use it as a scapegoat as to why their short sale wasn't approved. I've done many short sales with Onewest/Indymac since this deal, and my experience with them is that they are much better and realistic to work with than Bank of America and Chase in most cases.
Mike, it's great to hear about all of your success with IndyMac. I have yet to lose a short sale with them, but I have not found them to be "better and realistic" to work with. They have caused a lot of people in this country a ton of needless stress.

As far as the FDIC loss share program goes, the latest estimate is that the FDIC is on the hook for $177 Billion at last count. Not sure if you heard, but at the end of 2009, they forced all lenders in the country to pre-pay their next 3 years of premiums, and as of August 31st, they are still $14 Billion in the red. Where do you think they're going to get their next handout? You and me, that's who!

The loss share program is nothing but another bailout, as far as I'm concerned.

I have yet to meet an agent or read a blog/article from an agent using this program as a "scapegoat" for not closing their short sales. But, I suppose they are out there.

The point of the video is not to make excuses for losing short sales. It was meant to wake people up to yet another waste of taxpayer dollars.
Very true. We're all paying for it one way or the other...
I have a potential of listing a One West short sale for a client who already has a trustee sale date. He was told by an attorney that One West will not postpone the trustee sale even if they are in the process of negotiating an offer. Does anyone know if that is true?

I agree with you Mike, it is old news, although eye opening but I found that when you dig into it, it's not as large of a percentage of loans as implies and it does make sense that they would negotiate that deal. It is about business after all. :-) But it would be nice to be able to know up front, for example if the CSR's could disclose that the loan may be part of that deal. As agents we can do our own research too though and atleast make educated guess and prepare the client for the possibility. Although we should always prepare them for the worse and hope for the best, is my opinion. It's about being realistic.

RSS

Discussion Forum

Short Sale terminated because Sellers are current on payments

Started by Renee Ciufo, SFR, CNE. Last reply by Renee Ciufo, SFR, CNE May 18, 2012. 4 Replies

Why IndyMac/OneWest Would Rather Foreclose

Started by Bob Hertzog. Last reply by Mellissa Young-Ramirez Jan 26, 2012. 5 Replies

onewest/IndyMac blames Freddie Mac for not doing Short sale

Started by marc lederman. Last reply by Michael Schneider Jan 26, 2012. 3 Replies

One West Borrower Rental

Started by Ken Urman. Last reply by Joe Homs Jul 21, 2011. 7 Replies

IndyMac has to be the worst in loan modification

Started by Karin Christa. Last reply by Mellissa Young-Ramirez Jul 1, 2011. 2 Replies

© 2019   Created by Mike Linkenauger.   Powered by

Badges  |  Report an Issue  |  Terms of Service