IndyMac Bank |
The news on Friday that the Federal Deposit Insurance Corporation (FDIC) was taking over IndyMac Bank should not have come as any great surprise.
Why no surprise? As far as I am concerned, IndyMac was the poster child for irresponsible lending (and borrowing). In my experience as a real estate agent for nearly 30 years, marginal borrowers could always find a loan at IndyMac, regardless of their income. IndyMac specialized in "stated income" loans, the so-called "liar loans." Potential borrowers would simply state their occupation and income, without providing any documentation or verification. This would allow people like independent contractors to obtain mortgages, but it also was open to outright fraud.
When a buyer of one of my listings resorted to IndyMac for financing, I held my breath until the closing. They usually closed, but not without a lot of, shall we say, excitement.
Senator Charles Schumer (D. New York) has taken a lot of heat for suggesting in a letter of June 26 that IndyMac was in trouble. So, he's blamed for the Emperor not having any clothes on? Or for the heavily-made-up pig?
The bigger surprise is that IndyMac held on this long after another lender, Countrywide, fell into a hole. The FDIC claims that it has 90 institutions on its list, and it has been reported that IndyMac wasn't even on that list. That's scary, but we live in scary times.

1. RE: IndyMac Bank
If you ask me all realtors are liars and lazy workers. They don't want to show a home unless they see the green. Let’s face it; the market is no longer HOT for sellers. Of course you realtors have to lie and say it's getting better because you guys are in sales right! It's your lively hood. Sure when the market was hot you realtors did not have to work very hard. Just list the home and watch it fly off the shelf so to speak. But now things are different. The market is flooded with homes not moving. I have never seen so many foreclosures, pre-foreclosures, and Bank Sales, Auctions, and sheriff sales not to mention SHORT SALES. Too many people purchased homes when the market was high and now they can not dump. And it's getting worse. Every day homes are lowering their prices and they are still not selling. Forget about flipping, no one in their right mind can flip a home right now. Builders and Banks are hurting as well. It's about time you realtors face realty and tell all home owners their homes are really not worth as much as they think it is. If you guys want to continue making money, start working harder. Or go get a real job. Oh and by the way the market will not go up again until 2015. Stop thinking about yourself and your gain and start truly working for buyers. If you want to make a deal, tell buyers to bid really low, even if it's unrealistic. Give them an incentive to look and want to buy. Do not think you are offending the seller at all. Who wants a home to just sit around on the market for over a year? Times are hard and not getting any better. Also how greedy can people be? I'd rather have ten low contracts filled out on my desk at once than none. Think about it!
I was appalled by a friend of mine (lets call her Mary) who is a real estate agent. She works for Weichert Realtors. This past year I gave her my home to list. We listed my home in December at $300,000 with room for negotiating (as it is no longer a sellers market). After five months a buyer finally came forward and gave a low offer of $215,000. I was not offended all. What we did was negotiate to a closing price of $235,000. At first I was pleased. But…..when it was time to look and purchase, I could not believe the way I was treated by Mary. We looked at about six homes. One of the homes was a definite fixer upper which I felt was totally not worth the asking price of $250,000 and it had been sitting on the Market since April. So I told Mary I would like to put a low cash offer in of $180,000 (with room for negotiating, or so you would think). She told me the offer was too low and the buyer would not accept it. She did not even call the listing agent, nor did she complete a contract. Some friend let alone some agent she turned out to be. I am still looking at the market and have noticed that the home is still active and has not yet sold. So now I am on a different level of looking and dealing with realtors. As far as I am concerned, I work with all realtors and who ever truly works the best and cares the best will make the most money. I have some friends that have also been treated poorly by Realtors. Starting September 1st we have decided to bid any kind of offer we feel is necessary. Any Agent that does not submit the offer will be reported to (NAR) National Association of Realtors and Real Estate Commission. Some Realtors truly do not deserve to have a License.