Homeowners claim bank prefers FDIC bailout over house payments

[The Straight Story]

Homeowners claim bank prefers FDIC bailout over house payments


ELK GROVE, CA - A couple facing foreclosure from OneWest Bank has joined the growing number of homeowners, attorneys and real estate professionals who believe the bank would rather foreclose than modify a loan.

"It comes down to money and greed. All they want is your home," said Tom Cravalho, who with his wife Mona has been working for nearly two years to get out of an adjustable rate mortgage.

The Cravalhos said their original lender, IndyMac Bank, agreed to a loan modification in the summer of 2008 that would have offered them a 3 percent interest rate for five years. But then IndyMac was seized by the Federal Deposit Insurance Corporation (FDIC), which sold the bank's assets to a group of investors who formed OneWest Bank in March 2009.

Tom Cravalho said OneWest Bank has refused to honor the original agreement or discuss new terms. The Cravalhos' attorney believes OneWest is more interested in reimbursement from the FDIC for the bad loan under a so-called "shared loss" agreement than it is in modifying the Cravalhos' mortgage.

"They're going to make a lot more money getting Tom and Mona out of their house than they would leaving them in their house. A lot more money," said attorney Sean Gjerde. Gjerde explained that under the shared loss arrangement, OneWest could resell the home, collect an FDIC reimbursement, and actually end up with more money than it paid for the original IndyMac loan.

http://www.news10.net/news/story.aspx?storyid=76902&catid=2

[HillbillyBob]

1. It seems that way doesn't it?

With house prices falling the only way the greedybastids are gonna 'make' money is to settle with fdic.
From where I sit..and we bought a house 3 yrs ago. I spent time looking for a place we could actually qualify for with our income.
I talked to 10 15 real estate agents,they came up with an 'affordable' loan of 140,000$, but tried to get us to take more and at adjustable rate mortgage.
I finally found an agent that would show us homes in the 60-100 range, we felt that we could afford to go to 90G max.
We found one that the last owners walked away from they only owed 50- the bank wanted 75. Our agent had a broker he worked with and the broker got us a VA/FHA at 6.18 int. We were good about payments and were able to refi for a lower 5.6 rate. We can just afford the 579$ payments..too bad we have lost so much of our income over the last 10 yrs.
I feel for the others who have lost their homes, I have been there 2 x.