Indymac Class Action Lawsuit Claims Bank Hustled Them

LOS ANGELES (CN) – Indymac Bank and its successor, OneWest Bank, defrauded homebuyers by promising to modify their mortgages, but “never at any time possessed a good faith intention to perform on these loan modification agreements,” a class action claims in Superior Court. “Defendant sought only to induce homeowners into making further payments and defraud homeowners of their money.”

The class claims the bank packaged and sold “mass numbers” of mortgages as mortgage-backed securities (MBS) and sold them to investors, “and retained or otherwise negotiated for the servicing rights to such mortgage loans.” They claim that “Defendants knew, or reasonably should have known, that the private investors of the MBS in which plaintiffs’ mortgage was a part of [sic], had not and would not authorize defendants to modify plaintiffs’ mortgage loans, whereby [sic] reducing plaintiffs’ monthly mortgage payment and effective mortgage rate. …

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Posted in Bank News, Banking | 7 Comments

7 Responses to “Indymac Class Action Lawsuit Claims Bank Hustled Them”

  1. Clark Westfield says:

    Does anyone know if there is a current class action suit against Indymac for the way in which they billed for loans with a balloon payment? My loan is a 15 year loan amortized over 30 years but instead of the smaller payment, I’m being billed as if there’s no balloon. That means that if I default, all of that extra payment went to interest rather than paying additional principal. It took me 3 years of payments to realize that I’m being defrauded (in my opinion).

  2. baba booey says:

    @Clark

    What? OK you have a 30 due in 15 balloon. Smaller payment? No balloon? You have the “30″ year payment that is amortized per the schedule but the loan balance after 15 years must be paid in full or refinanced.

    If you default, the bank has the right to accelerate per your note.

    It appears that you have NO idea what you are talking about.

  3. hope hall says:

    WE ARE ASSEMBLING A CLASS ACTION SUIT AGAINST THE INDYMAC BANK.
    ARE YOU AN INDYMAC BANK CUSTOMER WHO HAS BEEN TREATED UNFAIRLY?
    WE ARE TAKING THEM TO COURT FOR DECEPTIVE TRADE PRATICES AND DECEPTIVE BUSINESS PRATICES. THE LAWSUIT IS ALSO FOR PEOPLE IN ALL STATES WITH PENDING JUDGEMENTS, FORCLSURES, PROBLEMS WITH MODIFICATIONS AND FORCIBLE EVICTIONS. TELL US HOW YOU’VE BEEN HURT, OR HOW THIS HAS EFFECTED YOUR SITUATION..MENTALLY, OR PHYSICALLY AND HOW YOU WERE TREATED BY THIS BANK. IF YOU ARE INTERESTED IN JOINING PLEASE GO TO indymaccomplaints@gmail.com WE WILL RETURN YOUR EMAIL WITH MORE INFORMATION.
    YOU CAN ALSO FIND US ON FACEBOOK AT INDYMACCOMPLAINTS
    TOGETHER WE CAN MAKE A DIFFERENCE

  4. ALBERT T> KHAMOU says:

    I am indymac bank customer i have same problem as above with modification and foreclosures and also it effected mentally and the way they handle the process.

  5. Darlene Horton says:

    Is there any recourse—OUr home is on the auction block on tuedsay follwoing having an attroney do all he can. We had a medical crisis. Now Im working and can pay—-we only have 8 years of payments left on our home.

  6. indymac bank says:

    I purchased my house thur Indymac bank back in 2002 and the payments were almost $900.00 month and the house was in a bad area of town I stayed there making my payments the best i could and then back in 2008 I asked could I refinace my house they told me they did not refinance manufactured homes. I was told not to call back about asking them. I also had a second mortage on the house which I did not know about. I lost alot of money in that house and finally I just had to walk away from it. Help.

  7. indymac bank says:

    Is there a class action lawsuit against this company or not. been waiting on a response since February of this year.