IndyMac Mortgages; Will They Close?

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Services for Real Estate Pros with Law Office of James Miner LLC

James M. Miner, Esq.

 
 
You may have heard of the FDIC takeover of IndyMac Bank on Friday.  This is bad news for IndyMac depositors (at least those with deposits in excess of the insured limit) and for IndyMac shareholders.  This could be really bad news for any of us trying to close deals with IndyMac financing.
Will they close?   The big question for us is whether or not IndyMac's successor entity will honor IndyMac's outstanding loan commitments.   So far there is no clear answer.  One IndyMac loan officer sent me an email from his vacation to say that "yes" the commitments would be honored.  I heard of another case, however, where the FDIC placed additional conditions on the loan which will ultimately prevent it from closing.   For those of us expecting to close deals with IndyMac financing, we'll have to wait it out through the weekend.  I don't expect any definitive answers before Monday.  I believe that even the IndyMac websites will be down until then.   For information, the FDIC says:   For all questions regarding new loans and the lending policies of IndyMac Federal Bank, please contact 800-998-2900 or visit the IndyMac Federal Bank website at www.IndyMac.com."
We'll see how this plays out.  Meantime, I'll be checking with other lenders to see who is best able to take over these cases and to quickly arrange for alternate financing.    I hope you find this information useful.   Good luck, and feel free to contact me if you have any questions.     Sincerely,  

Jim Miner
James M. Miner, Esq.

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Rainmaker
76,374
Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

I'll bet they won't close.  I've seen this show before and they will always close until one day when the phones ring unanswered.  I'd pull everything and get in line elsewhere.

Jul 12, 2008 02:57 AM #1
Rainer
139,088
Hope Goss
Ventura Property Shoppe - Ventura, CA
Ventura Real Estate

From everything I've read, they will open their doors again Monday for business as usual.  I'd still want a back up plan for any loans in progress.

Jul 12, 2008 03:00 AM #2
Ambassador
896,590
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Why would they honor them?  They got in that position for a reason.

Jul 12, 2008 03:23 AM #3
Rainmaker
385,228
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

I had a listing that was supposed to close yesterday.  Nope.  Buyers were supposed to fund through Indy Mac.  The day before, at 4:30, we were told there was now no loan.

Yes, they're opening their doors up on Monday with the federal government running them.  That looks to be taking care of banking only, though - there was no word about them handling mortgages.  I wouldn't count on the current loans being funded.  Get your buyers elsewhere.  And quick!

Jul 12, 2008 03:34 AM #4
Rainer
2,571
Maureen Lazar
1st Choice Mobile Notary - Lancaster, CA

     Well as a Mobile Notary I drove a total of 188 miles and spent 5 hours for a purchase signing I did at IndyMac on Thursday. I sure hope that this loan closes for the borrowers who had started this process months ago and also for myself to recover my gas fees at least. I am sure there are many others hoping that things pull togethor for their clients.

Jul 13, 2008 05:05 AM #5
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Rainmaker
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James Miner, Esq.

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