IndyMac - FSBIndymac - FSB Indymac Predatory lending costs me over 125,000 in 401K plus penalties to finish dream home! Pasadena California
To say IndyMac has Riped us off is a true understatement. I will state only the facts I have:
Appraisal ordered from IndyMac prior to closing our construction one time close modification was way too low. Our home was appraised against stick built and log sided homes when we were building a true custom log home. When this was pointed out to IndyMac they stated we could close and then as home got more complete, a new appraisal more closely appraised to our actual home could be done. No information was given as to the additional cost we would have to incur for this service.
Once the home was approx. 75% complete we did have the appraisal done at our cost of about $1400. This cost was to modify the initial note and pay for the appraisal and fee to attorney to file our warranty deed.
We were able to use an appraiser that worked in the area we were building and was more familiar with the area. The reason for this appraisal was to allow us the additional monies needed to fund this construction project. This was close to the actual cost we had disclosed to IndyMac from the start of the const. loan.
The appraisal was also to be used to avoid mortgage insurance.
The appraisal came in at around the actual cost to build which would have solved the mortgage insurance problem as well as most of our cost to build. IndyMac would not accept the value. This lack of funds would require us to either liquidate (with fees and penalties) almost all of our 25 years savings into our 401k or do a deed in lieu of foreclosure. We had perfect credit, so our 401k liquidation was our only option.
As the home drew close to completion we tried in vein to get our rate locked. IndyMac had closed offices and it was impossible to reach anyone by phone or e-mail. I sent at least 20 e-mails and included the president of the const. department as well as many others in higher positions. I was so frustrated I sent a letter to the Georgia Banking and Finance Department to complain about the lack of response. When at one time I actually was able to get someone on the phone after at least a 15 minute hold, I was told I could not lock for 3 business days as they were consolidating offices and could not help me.
We were at a loss. They threw us into a rate and basically said -take it or leave it. We were told this is the rate - period. We were not given any opportunity to watch the market and make a decision about what rate we would like to lock. This is the way the closing papers we signed told us we would have the RIGHT to do. Well here we are. We have a rate that is way too high for our good credit and mortgage insurance. We have tried to get them to work with us as this payment is setting us up for possible foreclosure. Why - because all our reserves are in the house!!!!
Funny thing- We have had 3 appraisals done on the actual home- not on the plans and specs, and all have come in at a minimum of $110,000 to $200,000 more than the IndyMac appraiser that did it based on something not even built.
They put us into mortgage insurance at the highest possible payment of 95% loan to value. This is what I all Predatory Lending. What a rip off IndyMac is.
We even have a second home financed with them and had perfect payments for almost 2 years prior to rolling this const. loan to perm. financing. They could see we were good customers.
Big_creek_ga
Ellijay, Georgia
U.S.A.
2 Updates & Rebuttals
Big_creek_ga
Ellijay,Georgia,
U.S.A.
Nice redirect... NOT!
#3Author of original report
Wed, May 07, 2008
In reponse to the rebuttal... I guess that is what the attempt is?
It's sad how they tried shift blame on the appraiser? Although I agree it was a pitiful attempt to put the value where it roightfully needed to be.
Shame on Indymac for NOT doing the "Right Thing!"
It's all about the money... As was suggested we are getting into another loan that is I might add over 2% lower than the loan IMB crammed us into and less the $400 PMI bomb that was dropped on us at the very end . This will save us over $1650 a month in PMI and payments. No lets be very clear here Indymac knew exactly what it was doing. Lets not forget this refinance only one month after closing with Indymac will cost us more of our hard earned money!
The sad thing is we have spent a ton of money we had been saving for our retirement because of the way this construction loan was handled. Indymac has lost not $1 on the deal. We had tough choices to make and will get through this. But, it's criminal the way they have handled it. The sad story is we were able to come out of the other side of this unbelievable mess. How many people have NOT? It's pure greed on their part and somehow they should have to pay for it.
Trust me, once we get this behind us. They have not heard the last of us... Rest assured!
Robert
Irvine,California,
U.S.A.
It's amazing..
#3Consumer Comment
Tue, May 06, 2008
Can these appraisers ever get anything right?
You have 1/2 the people complaining that the appraiser overvalued their property so they can't afford the amount they actually financed. Then you have 1/2 the people who complain that an appraiser undervalued their home causing them other issues.
First the appraiser from IndyMac only had the plans to go off of, so it is no wonder that they came in with a lower amount. The appraiser only has existing conditions to look at. One of these conditions is that the housing market is down sometimes as much as 30% in some areas. So while it may be possible that that appraiser undervalued the property, it is just as likey that the others overvalued the property.
You then go on for several sentences how you even had to complain to the Georgia Banking Commission that you could not get your rate locked in. Yet when they locked in the rate you complain because they did not let you choose the exact moment you wanted it locked in.
If your rate is too high for your good credit and you have a appraisal for 200K over what the IndyMac said it should be a "slam dunk" to get another loan.