Posted by Tony_FL on 8/1/08 7:55am
Msg #258094

IndyMac files bankruptcy

IndyMac Bancorp Inc, once one of the largest U.S. mortgage lenders, has filed for bankruptcy protection, less than three weeks after being seized by federal regulators following a bank run by depositors.

The Pasadena, California-based company filed for Chapter 7 protection Thursday with the U.S. bankruptcy court in Los Angeles, indicating it plans to liquidate. IndyMac said it expects the court will appoint a bankruptcy trustee promptly.

Reply by Tony_FL on 8/1/08 7:56am
Msg #258095

Re: IndyMac Bancorp files bankruptcy n/m

Reply by ChristineHI on 8/1/08 7:07pm
Msg #258233

Re: IndyMac Bancorp files bankruptcy

yeh, weird too, because I have an equity line with them. They said it is temporarily frozen and we cannot use it. They said this in a letter I received yesterday. It doesn't matter because we don't have any available credit anyway, but it seems wrong that you could get approved for this and have it for a couple of years then they can change it. It seems like it is the same as if they sell to another creditor, they cannot change the terms of your loan. It seems like that is changing the terms of the loan.
Life is changing these days that is for sure!

Reply by WDMD on 8/2/08 5:54am
Msg #258250

Re: IndyMac Bancorp files bankruptcy

"They said it is temporarily frozen and we cannot use it. They said this in a letter I received yesterday. It doesn't matter because we don't have any available credit anyway, but it seems wrong that you could get approved for this and have it for a couple of years then they can change it. It seems like it is the same as if they sell to another creditor, they cannot change the terms of your loan. It seems like that is changing the terms of the loan.
Life is changing these days that is for sure!"

Any equity line I've ever closed always had a list of conditions where the line could be frozen or cancelled. I don't see how that could be considered changing the terms of the loan if they followed through on one of the conditions.

One of the ones on the lists that I have seen state: "a regulatory agency has notified us that continued advances would constitute an unsafe and unsound business practice." Maybe being in bankruptcy would fall under that condition.