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Formerly known as IndyMac Bank it was purchased by the Federal government at the beginning of the mortgage meltdown and some time later then sold and purchased by One West Bank, FSB to add a loan servicing department to their portfolio back in March. Besides the name changing to IndyMac Mortgage Services, IndyMac has since seen been adopting new regulations of all types.

One of the harshest changes is their current repayment plan rules from what was acceptable as a down payment in order to qualify for a forbearance plan to what it is now. Previously two payments were required in order to set up a plan no matter what the status of the delinquency was. Whether the home was in foreclosure or had a sale date the lender would accept what they called a “double down payment” which covered two of the monthly payments in order to put the loan on hold. This hold would generally stop the foreclosure proceedings while the homeowner was allowed to complete the arrangement or allow the borrower to apply for a loan modification during this period.

The debtor would need to be able to at least afford their current payments to get on one of these plans. The interesting part is they were probably behind because the payments were out of their affordability but the lender would still expect them to make the minimum payments that got them to where they were in that moment. Well, as if only to add insult to injury they changed their rule about the need of a down payment covering two months and upped it to the homeowner having to pay 50% of the total reinstatement if there was a sale date posted within 30 days. In many states though the sale date does not appear until it is less than 30 days away so homeowners who found themselves pressed for money and time are being expected to come up with this total of the 50% on the spot.

These arrangements also come with a steep balloon payment at the end which is expected to be paid all at once.  If there are no payment arrangements set up by this time the account will go back into default.

Please consult a professional as your original application may affect your eventual payment arrangement offer by your lender. Don’t short change yourself because this could be permanent for the next 30 years!