For those just tuning into the mortgage industry welcome to the constant roller coaster of ups and downs with the regulations and procedure changes. IndyMac mortgage servicer being no stranger to this have recently yet again change their foreclosure arrangement policies.
If it is because of the One West Bank buy out or the industry as a whole this lender, for one, seems to making everyone’s life just a little bit harder. As of this past Wednesday, Indymac yet again revamped it’s foreclosure plan time line when they implemented a 5 business day rule. Indicative of “5 business day rule” you must call more than 5 days (not including holidays and weekends) prior to a borrower’s sale date to set up some arrangements to put the foreclosure sale on hold or to find some additional possible workouts. Anything that falls within the five business days prior to the sale is now bumped to the “full reinstatement only” status which leaves the homeowner with only the possibility of fully submitting the total amount owed. At that point in time the reinstatement figure would include attorney fees and costs, late charges, home inspections fees, etc. which can many times be in thousands.
This is a disaster for the company and its borrowers. Hopefully they will see the error of their ways because they are only proving to make things worse rather than seeing the gravity of their actions and their effect on customer mentality. A company like this should be there to support its customers. Even from the standpoint of protecting its own investor One West Bank is going to need to find a better way or their going to be looking for new investors.