Paul Kielsel, an attorney and fellow blogger in Los Angeles, Ca. is reporting that the the FDIC is giving Indymac borrowers who have negative ammortization mortgages AKA Pay Option ARM’s till Friday October 24th to seek a loan modification or to take legal action against Indymac.
Paul Kiesel:
According to the FDIC, Option ARM borrowers have 90 days to respond to the notice of IndyMac being taken over by the federal government, if they want to be able to modify their loan or take legal action against IndyMac. When does the 90 day period end? October 14. Where did the notice come from? The FDIC claims that when newspapers reported that the Office of Thrift Supervision transferred control of IndyMac to the FDIC, on July 11, the newspaper articles throughout the State of California served as a notice to the public.
However, most borrowers of Option ARM loans never got a formal notice. Regarding this issue, the only notices that have been sent out are to named plaintiffs in class action lawsuits against IndyMac Bancorp. In fact, the FDIC has refused to notify other Californian consumers of Option ARM loans that their time to take action is running out, and this is a big problem because tens of thousands of Option ARM borrowers have been left in the dark and do not realize that the date is rapidly approaching for them to seek a fair remedy to their troubled mortgage situation (or pending situation).
I have peronally performed forensic loan document reviews on many Pay Option ARM’s (quite a few with Indymac) and every single mortgage audit report turns up Truth in Lending Act (TILA) violations. Every single Pay Option ARM violates TILA due to improper calculations of the anual percentage rate or APR.
Meaning the loan’s interest rate was not properly disclosed per federal law to consumers and many borrowers could seek “serious” legal retribution against lenders like Indymac for these violations. Apparantly, the FDIC is taking these “legal rights” away from Indymac borrowers and homeowners everywhere.
It seems that there may be something seriously wrong with these loans and the FDIC and Ms. Sheila Bair knows that the extreme “legal liabilty” inherited by the FDIC from these toxic “ALT A” mortgages could diminish any further preventative actions they may take.
Indymac borrowers are encouraged to call the FDIC’s Indymac mortgage help line at 800-781-7399.
I highly encourage Indymac Pay Option ARM borrowers to call a lawyer NOW!!!!!!!!!!!!!!!!!!!!!
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