I received a call from IndyMac’s Heloc department. They are willing to take a huge discount on their note.
The property ARV is $375k .
The upb on the first is $143k .
The Heloc upb is $200k. Heloc would take $50k
This leaves alot of equity.
I must add that we made a short sale offer of $270k four months ago and they came back with $290k. Now, with the shorted 2nd – we’d be into it for $193k. Am I being greedy? I thought we give the 1st a try.
Given Indymac’s troubles, what are the chances they take a short sale on their 1st of $143k? If the BPO comes back at $350k, would they even be willing to take a discount?
The property has been in arrears for 16 months. The market in this area is very bad.
I’m asking because the tone of the Heloc loss mit rep was very desperate. Usually the 2nd is smaller than the 1st, but in this case its the other way around. Yes, they are in 2nd position, which is a very bad position to be in. But, there’s lots of equity.
I’ve found out many times that even if the HELOC is with the same 1st mtg lender, they have no communication btw each other.
So my main question is : Does IndyMac’s woes and desperation translate to better deals from them across the board? They are facing a severe liquidity crisis.
IndyMac Falls After Regulators Say It Isn’t `Well Capitalized’
By Linda Shen
July 8 (Bloomberg) – IndyMac Bancorp Inc., the California- based lender that is firing half its employees, plunged 37 percent in early trading after being told by regulators the bank isn’t ``well capitalized.‘’
IndyMac dropped 26 cents to 45 cents at 8:05 a.m. New York time in early trading. The lender will slash its workforce by 53 percent to 3,400 employees and curb lending, IndyMac said yesterday on its Web site. The Pasadena-based company said it was working with regulators on a new business plan.
We don't expect, given the really rough state of the housing market, that IndyMac is going to be able to get out of this,'' said Jason Arnold, an analyst at RBC Capital Markets in San Francisco, in an interview yesterday. The big problem is that no one will give them money. There’s too much risk involved and not enough value in their franchise.‘’
The lender’s so-called operating liquidity stands at about $1.7 billion,