Free counseling Saturday for troubled IndyMac borrowers
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When Pasadena’s IndyMac Bank sent letters to 35,000 borrowers who had missed mortgage payments, offering a chance to rework the loan terms to make them affordable, it got an initial response from fewer than half the borrowers, as The Times reported Oct. 31.
The savings and loan, a specialist in ‘stated income’ loans that was seized by federal regulators in July, is now hoping the borrowers will be more willing to talk over their options with loan counselors from nonprofit agencies.
IndyMac and the Federal Deposit Insurance Corp., which is now running the thrift, said today they are planning public sessions with such independent counselors for borrowers 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 will be at the sessions as well to get the actual workout process rolling.
The first session, with counselors from the Neighborhood Housing Services of Los Angeles, is scheduled for 10 a.m. to 3 p.m. Saturday at the Van Nuys Civic Center, 6262 Van Nuys Blvd. The second will be in Riverside on Dec. 6.
To receive counseling, borrowers should bring paychecks or other documentation of their incomes, as well as documents itemizing their expenses and assets.
IndyMac spokesman Evan Wagner said the bank is mailing 4,000 invitations to this weekend’s event to L.A. County borrowers who have missed mortgage payments. Borrowers who are current on their loans but are afraid of falling behind are welcome to discuss their situations as well, although their options are more limited, IndyMac said.
The modification program is designed to lower payments on first mortgages to 38% of borrowers’ incomes by reducing interest rates, extending loan terms and, in some cases, charging zero interest on part of the loan balance.
Given the lack of documentation on typical IndyMac loans, it’s probable that many borrowers are afraid of getting in trouble because their loan applications overstated their earnings. But Wagner said not to worry: ‘At this point, we don’t care about that.’
Borrowers unable to attend the sessions can obtain more information by calling (877) 908-HELP.
-- E. Scott Reckard
