Another One Bites The Dust – RIP IndyMac Bank
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!
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.
Here’s the story:
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.
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.
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.”