Keely's Broker Blog

Customers at IndyMac Bank Require Police Intervention

Police were called in today to the Encino, CA branch of IndyMac bank where customers were lined up and angrily trying to obtain their account funds.  IndyMac was shut down and taken over by the FDIC and these customers were concerned about getting their money (if and when) back from the bank.

I'm worried about this, with all the trouble WAMU's been having should I move all of my business and personal accounts somewhere else?  While the banks are FDIC insured it could be YEARS before people see their money reimbursed.  Scary.

Do you remember the (similar to this) scene in "It's a Wonderful Life"?

Another One Bites the Dust

IndyMac (my mortgage holder) was closed by the Feds last week and the FDIC will now act as conservator.  Before I start getting calls by IndyMac mortgagees asking if they still need to pay their mortgage, yes indeed you do.  We will all likely get notice about the takeover by mail and other than that, things won't feel at all different.

IndyMac was one of the nation's largest home lenders and was hit hard by foreclosures and short sales.  The firm's questionable liquidity was one of the reasons the Fed acted as they did, as they considered the bank a risk to investors and tax payers alike.

Are There Still Good Loan Products Available?

Absolutely, although that may not be the first answer you hear.  As you can well imagine, banks are all over the board these days in what they will and will not approve or allow so it takes some due diligence on your part to determine your (best) options. 

Different lenders have different programs, different allowances, different buyer acceptance rates, so it behooves you to check around.  Don't waste a lender's time of course but if all you are doing is checking with your bank, without at least a conversation to a broker (who has access to SEVERAL banks/lenders) then you're selling yourself short.

I'm still closing deals with great loan rates and payments, as are many of my agents and the good remaining loan officers I work with, so take heart! 

There are also new possibilities to homeownership opening up by way of mortgage assumptions and seller financing so it's good to ask your agent/attorney/lender what's possible. 

Many agents shirk from short sales, especially now that the new "Distressed Home Consultant" law was passed in Washington on June 12th, but there are some GREAT houses out there that banks have agreed to take less than what is owed on so it doesn't hurt to look!  You can get lists of these types of properties by sending me an emailed request.

The market is still moving and so are we!