INDYMAC/ONE WEST BANK

LOTUS REALTYGROUP


It is becoming harder and harder to get loan modifications these days. One of the most disturbing things to watch is a homeowner with the number one goal of staying in their property. The homeowner genuinely has a hardship due to unforeseen circumstances and the current state of our economy and asks their lender for help through a loan modification. The lender has the homeowner fill out the paperwork while the home is in active foreclosure status.



Weeks go by. The homeowner repeatedly calls their representative and is told that the file is in review. In some instances there is no communication, a sale date appears in the public records and a REALTOR knocks on the homeowner’s door and says “I can help you”. Of course, the homeowner does not want your help because he or she thinks their lender is actively and aggressively working on their loan modification package which will STOP the sale date and they will be able to stay in their home.



The homeowner continues to remain hopeful until they realize that the lender is not going to help and there is no other choice but to short sale their home or simply turn in their keys and give the home back to the bank. Sound familiar?



Why is it so hard to get a loan modification?



I used to feel that the number one reason it was hard for a homeowner to get a loan modification was simply because most people did not qualify. The government program “HAMP” was originally created to help homeowners stay in their homes by modifying their loan. This has ultimately failed due to lenders not qualifying the homeowners properly. It was a foreclosure waiting to happen. This has lead to the new “HAFA” program which will allow the homeowners who previously went through the “HAMP” program but have again defaulted on their mortgage to short sale their home and avoid foreclosure.



However, after receiving this “You Tube” video from a client of mine, it has really made me think about it in more detail. The following link is to a video on one of the hardest lenders to work with “INDYMAC”. Please take the time to listen to view this short video clip:


http://www.youtube.com/user/fiercefreeleancer



For those who are not aware, INDYMAC was seized by the FDIC in July of 2008. The FDIC then sold the bank to One West Bank in March of 2009. In the sale, the FDIC agreed to sell the assets of INDYMAC to One West Bank for:



1st mortgages were purchased for 70% of the value.



HELOCS were purchased for 58% of the value.



In addition the FDIC agreed to step in and cover 80-95% of the losses that might occur in short sales and foreclosures. The loss is calculated using the “Original” loan balance “NOT what One West Bank paid for it.



After listening to an actual scenario in this “youtube” video it was apparent to me that this particular lender cannot lose on short sale and foreclosure transactions. Therefore why is it so hard to get a loan modification with INDYMAC/One West Bank? The reason is simple, there is too much money to be made in short sales and foreclosures with the deal the government has made with them.



I truly hope that we do not hear of this with other lenders in the future.


Tip when working with INDYMAC/One West Bank:



It is always frustrating working with this lender knowing about the government deal and fighting with them on the value of the property based on a legitimate offer. The tip of knowing that they cannot lose on these deals means that as long as I have a complete short sale package, an offer with a listing history and a qualified homeowner with a true hardship there is no reason why they should not accept my proposal. It is for this reason that while others may struggle to get a deal done with this institution I am able to close deals with the bank.


(Quote for the day) There is an ongoing battle between conscience and self-interest in which, at some point we have to take sides. ~Robert Brault



LOTUS REALTY GROUP



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