Pissed Consumer - Charged me $7000 const to perm then offered no reasonable perm loan

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Charged me $7000 const to perm then offered no reasonable perm loan

Jun 9, 2008

INDYMAC BANK complaint

I chose Indymac Bank for my construction loan. They stated that upon completion of the home I would pay no more closing costs($7000) to roll it over to a permanant mortgage. Well today the home is completed and Indymac told me I had two options 1. An 8.5% 5 year ARM. Yes I said 8.5%. The other banks are 5.5% at this time for a 5 year ARM. 2. A 5.5% 1 month LIBOR. That is like charging the house on a credit card.

The mortgage specialist told me they no longer offer a 30 year fixed. I will be suing Indymac over this SCAM.

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Comments (8)

1. Written by Bill, on 24-07-2008 18:42

I just rolled my const to per loan in June. They quoted me a 5/1 ARM @ 9.875%. After completely coming throwing a gasket they came down to 9.5%. I had no choice but to go through with it. Now I have a company trying to do a loan modification to a 30yr 5 to 6%. Basically we are all victims of Indymac mismanaging their money to the point where the Feds had to step in. Its completely obvious that Indymac's garbage perm loan is a strong armed attempt to make us refi out and Indymac can get their liquidity back. To little to late.

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2. Written by SR, on 17-07-2008 09:52

There are no options. They will lie and cheat and never release the final draws. I have been at it with Indymac for 8 months now. These people need to be locked up. I'm so glad the FBI are investigating.

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3. Written by jeff pate, on 17-07-2008 03:47

i am 2 months away from construction to perm and scared about what will be available. any advise?

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4. Written by James Mangan, on 12-07-2008 09:37

The same thing happened to me as well. I have email correspondence from the broker stating that at perm my rate would be 6.25%, only now they want 9.5%....can you believe that. The more I look this up on the computer, the more people I see have been misled. I think I will meet with an attorney on Monday.

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5. Written by CANT LOGIN TO THEIR SITE, on 12-07-2008 07:46

I tried today to login to my construction loan and their site is down. I need to get my draws. Anyone else had this problem?

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6. Written by fdj, on 08-07-2008 00:29

This happened to us too...only worse...they devalued our home and refused to give us the money to finish...we are finishing it ourselves while indymac makes $4000 per month in construction fees.... There ought to be a class action suit here...I'd love to be contacted and pursue this...

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7. Written by Tom, on 07-07-2008 11:42

Exact same thing happend to us. Not to mention they released the final draw with liens on the property. Now I have $30K in liens on the house and I'm stuck in a fully adjustable ARM at 8.375%. I refuse to pay!

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8. Written by ag, on 02-07-2008 17:18

IndyMac did the same thing to me and my husband. Instead of being offered a 30 year fixed (which was the agreement when we signed the loan papers) we were given only one choice, a 5 year fixed at 6.25%. Basically they don't want our business. They want us to go away and refinance. But they do want to keep all the closing costs we paid.

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