It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Troubled IndyMac Borrowers Receiving FDIC Bailout This Week

page: 1
1

log in

join
share:

posted on Aug, 20 2008 @ 06:36 PM
link   

Troubled IndyMac Borrowers Receiving FDIC Bailout This Week


ap.google.com

Thousands of troubled home borrowers with loans from IndyMac Federal Bank will be able to switch to fixed-rate mortgages under a new plan from federal regulators, who seized the bank last month after it became the largest regulated thrift to fail.

Most IndyMac borrowers who are seriously delinquent or in default on their mortgages and can document their situation will be able to switch into loans capped at an interest rate around 6.5 percent, the Federal Deposit Insurance Corp. said Wednesday.
(visit the link for the full news article)


Related News Links:
www.100mortgages.org
www.bloomberg.com

Related AboveTopSecret.com Discussion Threads:
Banking regulators close IndyMac
Confusion at IndyMac fuels customers' anger

[edit on 8/20/2008 by anachryon]




posted on Aug, 20 2008 @ 06:36 PM
link   
Home borrowers saddled with ARMs issued originally through the now-failed IndyMac Bank now have a chance to keep their homes. While good news for homeowners, the money to finance these homes has to come from somewhere, right?

As IndyMac was taken over by the FDIC in July, that money comes from the taxpayers. Is it right that the Fed should bail out these homeowners in light of the economic crunch America is in right now?

ap.google.com
(visit the link for the full news article)



posted on Aug, 20 2008 @ 06:50 PM
link   
remember

its not called a "bail out" by the current administration


its a monetary reinforcement procedure


sounds less pathetic that way....or so they tell me




Is it right that the Fed should bail out these homeowners in light of the economic crunch America is in right now?


In my opinion - no.

I agree that it sucks - but i also agree that they signed it.

The government didnt help me get out of my credit card troubles when i was younger. I had to do it 100% on my own...

why the hell should they start now


[edit on 8/20/2008 by Andrew E. Wiggin]



posted on Aug, 20 2008 @ 07:22 PM
link   
Imagine that. A Fed bailout. SO basically, we are borrowing fake money to payout money the banks get credit for 'loaning' although that was fake too. And we pay real interst on it. Man we are so screwed up.

So we paying twice (three time technically) and every transaction has a cost attatched to it. No wonder the scam is protected. They can't lose, we can't win. Smacks of indebtured service, serfdom, perhaps slavery..., Ok that may be a bit melodramatic.



posted on Aug, 20 2008 @ 07:30 PM
link   
reply to post by Maxmars
 


instead of making the companies eat their losses, like consumers have been made to do for decades

they're actually bailing them out.

It makes me #ing sick.

Let them feel the wrath of a debt collector some time.



posted on Aug, 20 2008 @ 07:43 PM
link   
reply to post by Andrew E. Wiggin
 


Personally I'm torn on the whole bailout - sorry, "monetary reinforcement procedure"
- issue.

On one hand, you're completely correct that the government doesn't step in to help people who get in over their head with other forms of borrowing (i.e. credit cards) and it's hard to accept the fact that they're doing just that with the crummy mortgages. We're all dealing with higher food prices, higher gas prices, layoffs, etc - we're not getting any help!


On the other hand...many mortgage brokers and even some banks either falsified borrowers' financials or outright lied to borrowers as to what they could afford. It's pretty obvious that many Americans aren't educated as to the twists & turns of mortgage borrowing, and that's usually why they turn to "professionals" to help them determine how much they can borrow. Too many of the folks who've already lost their homes were assured by these "professionals" that they could afford that $250k home in suburbia, so they signed on for a terrible ARM or subprime mortgage. Brokers assured them their payments would stay low or underplayed the degree to which their payments could (and would!) skyrocket, or they were told they could refi at a fixed rate before any increases took place.
The more mortgages a lender held, the more they could repackage those mortgages into securities for investors and the more profit they would make from said investors. The more mortgages a broker sold, the bigger a paycheck they got from the lending banks. At the bottom of the turd pile, unfortunately, was often the homeowners who are now out of home or being bailed out.

Flippers and other investors who bought up houses during the boom - I have no sympathy for their losses. They knew exactly what game they were playing.
The unfortunate, often lower-middle-class families that were effectively duped by their broker and/or lender via predatory lending - that's who I have sympathy for. These people had no idea what they were getting in to.

Here are some links about the people it's hard to say "oh well!" to:
"Brokers who lie, and more subprime nightmares"
"Mortgage brokers urge customers to lie about salary (UK)"
"Toney says he was taught to give homeowners the hard sell to get them into aggressive high-interest loans — even if it meant convincing them to refinance, instead of sticking with a better fixed-rate loan that they could afford."



posted on Aug, 20 2008 @ 07:47 PM
link   
reply to post by anachryon
 


well i understand your torn feelings on it

but i look at it this way

if you bail out the consumers like they're "doing here"

you're only perpretuating the problem

the companies should never have let prices get that high to begin with and if you dont bail anyone out, the companies will lower prices to increase profits.

plain and simply put - everyone got too greedy

the only way to destroy greed is to loose everything.

a bailout only makes things worse.



posted on Aug, 20 2008 @ 07:51 PM
link   
reply to post by Andrew E. Wiggin
 


TOTALLY AGREE with you AEW!!! Wife and I are in the same spot. However, our debit is CC not mortgage...but .. isn't a loan a loan .. no matter what label you put on it? With the new law on Bankruptcy we're 'barely' under the wire..



posted on Aug, 20 2008 @ 07:54 PM
link   
reply to post by anachryon
 


Im not torn its pretty black and white to me. WE DONT HAVE ANY MONEY!!!!!! The fact is the US if it were a business would be bankrupt. I cant put it any more simple. If it couldnt call up the FED and borrow money at interest or any of the other countries out there we would be insolvent period. The scam is ending. Its going to take another war to pay for these bailouts printing money just isnt going to do it anymore. You think this deal with Russia is happening for no reason?



posted on Aug, 20 2008 @ 07:54 PM
link   
Just for the record.. here' my thread back when all this started or just after..just for review..

IndyMac



posted on Aug, 20 2008 @ 07:55 PM
link   
reply to post by Komodo
 


the bailout serves to protect the company - not the consumer

the bankruptcy law is proof of that

middle class americans like you and your wife, and me and mine, cant get a second chance when we need it any longer

check out this new documentary called

Maxed Out : Hard Times

its very eye opening about the current administration's policies, especially concerning the bankruptcy laws (and you'll be suprised who wrote them)



posted on Aug, 20 2008 @ 08:06 PM
link   
reply to post by Komodo
 


Thanks Komodo, I edited the first post to include your thread. Still getting used to how all this stuff works 'round here.




reply to post by mybigunit
 


I know we don't have the money, but it's hard for me, as a person, to not have empathy for the people who were duped by greedy brokers and lenders. Again, I don't feel a thing for the banks, for the brokers, for the flippers, for the people who knew damn well they were living above their means - but I feel for those who honestly thought they were achieving "the American Dream."

That's why I'm torn.



posted on Aug, 26 2008 @ 03:08 AM
link   
reply to post by Maxmars
 





So we paying twice (three time technically) and every transaction has a cost attatched to it. No wonder the scam is protected. They can't lose, we can't win. Smacks of indebtured service, serfdom, perhaps slavery..., Ok that may be a bit melodramatic.


Hell no, your bang on. Do we keep working like good little slaves or call bullsh!t thats the question?



posted on Aug, 26 2008 @ 07:14 AM
link   
I hate to point this out, but the FDIC is an insurance pool funded by the banks themselves that all pay a premium to become members. It's not government (taxpayer) money.



posted on Aug, 26 2008 @ 07:43 AM
link   

Originally posted by mythatsabigprobe
I hate to point this out, but the FDIC is an insurance pool funded by the banks themselves that all pay a premium to become members. It's not government (taxpayer) money.


I know you're right, but that money (which doesn't exists in reality) 'paid' by banks, is fiat money created by our FED who is charging us interest on it. The scam ensures that it ALL comes from the citizens, no?

[edit on 26-8-2008 by Maxmars]



posted on Aug, 26 2008 @ 08:23 AM
link   

Originally posted by mythatsabigprobe
I hate to point this out, but the FDIC is an insurance pool funded by the banks themselves that all pay a premium to become members. It's not government (taxpayer) money.


Actually when you follow the routes the money DOES come from us even though it is not made obvious. The FED charges interest on money our government borrows from it (Which it shouldnt have to the government should be creating its own money) and that money is being used to bail out these people. On top of this in a financial crisis if there are any shortfalls the FDIC cant cover guess where that money comes from for these "to big to fail" companies. The taxpayer. 2 more ways the taxpayer gets hosed.



new topics

top topics



 
1

log in

join