Fed-run IndyMac Halts Foreclosures
The FDIC has halted the foreclosure process for all portfolio-held loans of IndyMac customers. FDIC chairwoman Shelia Bair has been critical of banks and lenders for not doing enough to modify loans for customers in trouble. There is no word on the specific changes the FDIC will make to IndyMac’s loan policy, but needless to say from the mouth of Bair they’re going to more aggressively attempt to modify delinquent loans instead of foreclosing.
So it begs the question. If your mortgage is with a bank on the brink and you’re having trouble making your mortgage payments, are you hoping for a collapse?
From Reuters:
The Federal Deposit Insurance Corp has temporarily halted any foreclosures on the $15 billion of bank-owned mortgage loans found in IndyMac’s portfolio, FDIC Chairman Sheila Bair said on Monday.
Bair has scolded mortgage lenders for being too slow to help distressed borrowers restructure their home loans.
“Modified loans will be worth more than foreclosed loans,” she said in an interview on CNBC television.