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Another One Bites The Dust – RIP IndyMac Bank

I can hear it now, (queue the “Another One Bites the Dust” rif) “domp, domp domp. da, domp domp domp da domp.”

How would feel if your money was parked at IndyMac?

Incidentally, I’m doing a short sale with IndyMac right now. We submitted the package on March 3rd, 2008. Our offer, $172,900. We received a reply two weeks ago. Indy’s counter: $248,000. We didn’t even reply.

They called us three days ago and asked, “Is that $172,900 offer still good?”

YES, IndyMac…YES! Our offer is still good! Hey, its me Craig….please take my offer!

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UPDATE:  (July 15th, 2008)

Talk about Indian-Givers (is that P.C.?)!  Uhm, yeah- IndyMac is still open for business, and maybe just a bit greedy.  We received a call from them on Monday.  They said, “We’ll take 235K for the house.” (see short sale; above)

What the heck?  How do you ask, “Is that 172,900 offer good – then come back with $235K?

We simply replied that, $172,900 was our best and final.  I’ll keep you all posted.
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Here’s the story:

From IndyMac’s site:

On July 11, 2008, IndyMac Bank, F.S.B., Pasadena, CA was closed by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) was named Conservator. All non-brokered insured deposit accounts have been transferred to IndyMac Federal Bank, F.S.B., Pasadena, CA (“assuming institution”) a new FDIC-insured Federal Mutual Savings Bank. No advance notice is given to the public when a financial institution is closed.

From Rueters:

WASHINGTON (Reuters) – U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.

California-based IndyMac, which specialized in a type of mortgage that often required minimal documents from borrowers, became the fifth U.S. bank to fail this year as a housing bust and credit crunch strain financial institutions.

From The Motley Fool

The swap meet that has become the financial industry is changing hands like never before. Bank of America (NYSE: BAC) picked up the remnants of Countrywide; JPMorgan Chase (NYSE: JPM) jumped in to grab what was left of Bear Stearns, and later tried to make a run for Washington Mutual (NYSE: WM), only to be rebuffed. If you’re in the market for bargain-hunting assets out of the financial sector, today’s conditions should be keeping you busy.

For IndyMac Bancorp (NYSE: IMB), the summer of 2007 apparently looked like a good time to swoop in on the market’s pain and take advantage of the turmoil. We’ve all heard the term “Don’t try to catch a falling knife.” For IndyMac, you might want to add, “Don’t try to catch a falling knife, especially if you’re the one dropping the knife.”

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