The main reason why your lender won't modify your loan if you had Indymac....
Posted by Rick Goates on Sat, Dec 19, 2009 @ 12:43 PM
In what appears to be one of greatest injustices of our current time we get to bottom line reason why you probably Won't get a loan modification if your bank was Indymac!
When Indymac bank failed a group of Investors (Hedge Fund Billionaires) etc purchased the assets.Under the Shared agreement with the FDIC these folks get paid and make money every time they foreclose on an asset (Your home).As you will find out there is NO incentive to Modify your mortgage if they make MORE money by foreclosing!!
This group paid the following for the assets when they took on the Indymac mess-
SCHEDULE 2.02
CATEGORIES AND APPLICABLE PERCENTAGES
WITH RESPECT TO LOANS
Category of Loan % of Par
Held for Sale
Current
30 Days Delinquent
60+ Days Delinquent
70.0000%
60.0000%
55.0000%
Held for Investment
Whole Loans
Current
30 Days Delinquent
60+ Days Delinquent
HELOCs
Current
30 Days Delinquent
60+ Days Delinquent
70.0000%
60.0000%
55.0000%
58.0000%
50.0000%
37.7500%
For the Helocs in default you can see they paid .37c on the dollar....
Now the fun part....when the new owners foreclose on your home they get paid....yes you heard it right....they get paid!
Here is an example for illustration-Basically, they purchased all current residential mortgages at 55-70% of par value (55-70% of the outstanding loan amounts). They purchased all current HELOCS at 37.75- 58% of Par Value!!!
Next, in order to "sweeten up that ol pot", the FDIC guaranteed the following: For any residential mortgages where OneWest experiences a loss, the FDIC will cover anywhere from 80%-95% of the loss. The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan.
If the Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200. OneWest pays $334,600 for the loan. We have an all cash offer of $241,000, net to OneWest. So, let's do the math, shall we?
The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer. In this case, $485,200-$241,000, or $244,200.Then the FDIC, according to their own Loss Share Agreement, cuts a check to OneWest for 80% of the so-called "net loss". So, in this case, OneWest gets a check from Uncle Sam (translation-you an me) for $195,360 (.80 X $244,200).
Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360. In this example OneWest paid $334,600 for the loan. So, OneWest puts $101,760 in their front pocket, THANKS FDIC-love ya man! That is over $100k of tax payers dollars!
Seem fair to you? Well, if you are Billionaire Investor it is the best payday since sliced bread came out!
Source-http://www.fdic.gov/about/freedom/IndyMacLoanSaleAgrmt.pdf
Now take the example above and multiply by a couple thousand....my calculator doesn't go that high....
Who says you can't make money in Real Estate dealing with the Government?
Regards
Rick