Failed IndyMac bank, which is being run by the FDIC, announced plans to hold in-person counseling sessions through Neighborhood Housing Services of Los Angeles, a not-for-profit group.

The two scheduled sessions are as follows:

• Saturday, November 22, 2008 at the Van Nuys Civic Center, from 10 a.m. to 3 p.m.
• Saturday, December 6, 2008 in Riverside at a location to be announced.

The bank is mailing notices to more than 4,000 homeowners who are behind on their mortgage payments. Homeowners who are not behind on their home loans may attend, but shouldn’t expect much assistance.

IndyMac to Restructure Loans

IndyMac intends to restructure loans, setting payments at approximately 38% of the borrower’s income, extending the loan term, and in some cases not charging interest on some portion of the principal.

Homeowners should bring the following documents to the meetings:

• Documents verifying income, such as pay stubs, W2s, 1099s and tax returns,
• A list of other assets owned (i.e. cars, real estate, etc.) and documents supporting such ownership, and
• A list of monthly expenses (i.e. utility bills, food & clothing expenses, car payments, etc.) and supporting documentation.

Borrowers can get more information by calling (877) 908-4357.

Keep Your Crib Recommendation

If you are behind on your mortgage payments to IndyMac, we suggest that you take the initiative in restructuring your loan.

You can do this by:
• Contacting the bank directly,
• Contacting Neighborhood Housing Services for counseling services,
• Attending one of the two scheduled public sessions, arriving early, or
• For the most immediate results, hiring an attorney who specializes in restructuring foreclosures.

Kudos & Props

IndyMac/FDIC should be commended for taking aggressive action to help distressed homeowners.

Doghouse

The FDIC is picking up the tab because many of the IndyMac loans never should have been made in the first place. The FDIC and other regulatory agencies should have done more to prevent bad loans from being made in the first place.

And Don’t Forget Who is Picking Up the Tab

You are. The FDIC is financed by charges to banks, which in turn pass the charges on to consumers. That’s you, dude.