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Some Good News: An IndyMac Update
In the midst of all the market turmoil, one innovative program to deal with the underlying housing and mortgage issues is moving ahead smartly. You will recall that, fast upon the heels of its takeover of IndyMac, the FDIC announced an aggressive program to modify loans owned or serviced by IndyMac to prevent avoidable foreclosures. Initially, the FDIC wrote almost 5,000 borrowers and proposed to modify their loans and reduce their payments-all they needed to do was send back a check in the new payment amount, sign a modification agreement, and grant permission to check the borrower's tax return. (Where the tax return information does not conform to information in IndyMac's files, the FDIC requires further verification of borrower income.) One of the best aspects of the program for borrowers is that the letter they received included a specific new payment amount, not just an invitation to call their servicer.
So far IndyMac has sent out thousands more modification proposals and, to date, the FDIC has gotten more than a 70% response rate to these mailings. Several thousand loans have now been restructured. The FDIC has worked within IndyMac's existing servicing agreements and with the owners (or trustees for owners) of mortgages IndyMac was servicing to allow quite aggressive modifications, including deferral of principal until the property is sold or refinance-a strategy that prevents a borrower newly relieved of excessive mortgage obligations from getting back into trouble by releveraging. Next up, working with non-profits to do outreach to 19,000 borrowers who the FDIC believes will be harder to reach.
What's particularly exciting about this is not only that borrowers and their communities are being saved and the FDIC and its insurance fund are meeting their least-cost obligation, it's also serving as a model. When Bank of America announced a settlement with 11 state Attorneys General on Sunday in which it pledged to modify mortgages at a cost of $8.4 billion, it was following the FDIC's lead. Really. A government agency showing the private sector how to do something constructive. I suspect we'll see a good deal more of that in the next several years.
IndyMac uninsured depositors
That is great news that restructuring has started for folks who cannot afford their loans. But it is still at the expense of folks like us who had their hard earned money and although we have proof that we are insured that is not a top priority for Indymac and FDIC. Is FDIC or the government ever going to help the depositors retriebve their money.
Are there any uninsured depositors out there who have their money frozen? I am getting very frustrated at the fact that both institutions and government bailing out people who have made mistakes but depositors (not investors) have had to go through this agony. Any Advise.
I fully agree. I am also
I fully agree. I am also depositor who lost money from Indymac bankruptcy and I havent heard from Indymac about what's going on. Are they selling the assets, are we going to get our money back, and when?
It's great that they are helping those who bought houses that they werent suppossed to, but what about us, the responsible people? Are they going to give us back what they owe us?
I have not heard anything
I have not heard anything about my uninsured funds. I have a child in college and that money in the CD that was uninsured is for her tuition, board, and living expenses. The focus has been on helping those with mortgages that they can't afford but what about helping those who did not over extend ourselves with more house than we can afford and were responsibly saving for college and not looking for handouts? I had 2 CDs that overlapped for a few weeks making it over the 100,000 that was insured. One CD was due the week Indymac was taken over by the FDIC. I contacted my state representative and received a form letter with no help. Why are others now insured for $250,000 and we can't get our money that is less than that amount? This is an injustice. Not only irresponsible homeowners need assistance.
It's a money grab!
Most of the banks were taken over due to a run on the banks, with Indymac being one of the first and the largest one allowed to fail/be taken over by the FDIC. I was told by BOTH a new account rep. and branch manager that the way my accounts were structured that I was FDIC insured up to $250,000...I found out the hard way I wasn't.
FDIC reps tell me that I should get 70% of my uninsured funds back based on past bank takeovers. That gives the Feds tens of thousands of actual cash from my pockets. Not a bad deal for them.
The real bummer is that even if Indymac had to foreclose on homes and resold them for half of the original loan amount-a worst case scenerio-they would still be VERY profitable!
IndyMac's assets won't disappear...but our hard earned cash will! You can thank Schummer and our government for that. Welcome to the new America-you got screwed for being fiscally responsiable. Go over extend yourself and enjoy those new cars, T.V.'s and toys and go BK and pay pennies on the dollar for them!
capital loss?
I am also frustrated about not having my money returned. My other concern is i am not positivie this can be taken as a capital loss. If these losses can only be used as an itemized deduction it is a crying shame for those of us retirees who do not itemize and have relied on our interest income to survive. Does anyone have the straight scoop on how these losses are to be treated on one's 1040 tax return?
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