The FDIC (Federal Deposit Insurance Corporation) announced last week that six weeks after taking over Indy Mac Bank it will start systematically modifying some of the bank’s most difficult loans to keep borrowers in their homes.
This should have an immediate impact on our local Las Vegas Foreclosure market as well as nationally – it’s difficult to predict how significant the impact though until Indy Mac works through its loan portfolio and we have an understanding of how many homeowners here in Las Vegas can take advantage of this more flexible plan.
The FDIC has sent out the first batch of 25,000 letters to homeowners who are delinquent on their loans. The intent is to offer them much more favorable terms so they can stay in their homes, while minimizing the impact these potential delinquencies will have on the financial markets.
For Indy Mac borrowers to qualify for an FDIC modification they will have to show verification of income, confirm that the home is their primary residence and not an investment property, and sign the correspondence sent to them by the FDIC agreeing to the new terms along with the first payment towards the new loan.
The new interest rate may not exceed the current Freddie Mac “survey rate” which is set at 6.5 (approximately), which could change moving forward, depending on other variables.
The FDIC indicated that borrowers who have not received a letter may also call 800.781.7399 to talk directly with an IndyMac Federal representative to see if they can qualify for this new program.
We believe this is a good thing for the Las Vegas Foreclosure market and across the US. As foreclosures cost the bank a great deal of time and money and it is in their best interest and the homeowner’s to prevent foreclosures when and where they can.
Although some homeowners may opt for a short sale as a way to forestall a Las Vegas Foreclosure if they don’t find the new terms for a revised loan to be favorable.
