IndyMac will get personal with loan workouts
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IndyMac Federal Bank, which has had trouble getting distressed borrowers to contact it about reworking the terms of their mortgages, is hoping they’ll be more willing to talk over their options in person with loan counselors from nonprofit agencies.
The lender and the Federal Deposit Insurance Corp., which is now running the thrift, on Wednesday announced walk-in counseling sessions for borrowers the next two Saturdays in the Los Angeles area and the Inland Empire.
The counselors, including Spanish speakers, will be able to discuss IndyMac’s aggressive effort to modify loans.
IndyMac employees also will be on hand to get workouts underway.
The first session, with counselors from Neighborhood Housing Services of Los Angeles, is scheduled for 10 a.m. to 3 p.m. Saturday at the Van Nuys Civic Center.
The second will be Dec. 6 in Riverside.
Customers who want counseling should bring paychecks or other documentation of their income, as well as information on their expenses and assets.
IndyMac spokesman Evan Wagner said the bank was mailing notices about Saturday’s event to 4,000 borrowers in L.A. County who have missed payments.
Borrowers who are current on their loans but are afraid of falling behind are welcome to discuss their situations as well, but their options are more limited.
The modification program is designed to lower payments on a first mortgage to 38% of the borrower’s income by reducing interest rates, extending the loan’s term and, in some cases, charging no interest on part of the loan balance.
Loans made by IndyMac during the housing boom typically didn’t require proof of income, so many borrowers now may fear that asking for help will get them into trouble because their loan applications overstated their earnings.
But Wagner said that shouldn’t stop people from learning about their options.
“We’re concerned with what people can afford today, not what they said in the past,” he said.
Borrowers unable to attend the sessions can get more information by calling (877) 908-HELP.
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