OneWest Bank accused of pushing home loan borrowers into foreclosure

[Newsjock]

Source: Sacramento Bee

Nineteen months after the catastrophic failure of one of Sacramento's top lenders, Pasadena-based IndyMac Bank, a flurry of local lawsuits alleges that the bank's successor – OneWest Bank – is systematically working to push home loan borrowers into foreclosure.

The allegations filed in the Eastern District of U.S. Bankruptcy Court claim that OneWest can make more money by foreclosing than by keeping borrowers in their homes. That's due to its so-called "shared-loss" agreement with the Federal Deposit Insurance Corp., at least 10 local lawsuits allege.

... But Sacramento bankruptcy lawyer Peter Macaluso claims the shared-loss agreement will reward OneWest for foreclosing on homes. Here's how, he said: The company bought IndyMac's troubled portfolio at a 30 percent discount. It can count on the FDIC eventually reimbursing 80 percent or more of its losses – and also can keep proceeds from the foreclosure sales.

"They're deliberately blowing people out in a systematic pattern," said Macaluso.

He has filed eight lawsuits in U.S. Bankruptcy Court on behalf of area IndyMac borrowers who have filed for Chapter 13 bankruptcy protection.

Read more: http://www.sacbee.com/topstories/story/2552932.html

[Political_Junkie]

1. I can believe this.

Our bank completely refused to work with us in anyway that would help. When we got behind a month on the mortgage they would not take any less than two months payment, behind two months - three months payment, etc.

[lonestarnot]

2. And I will guess that they are not the only ones.

[dixiegrrrrl]

3. Great...closing banks is now a gov, subsidized scam.

And this is not limited to IndyMac, you can be sure.

[laughingliberal]

4. This is the bank who the judge in CA ruled against & awarded a couple their home due to

the bank's complete refusal to try and work anything out with them after repeated good faith attempts on the couple's part to make good on the debt.

[ThomCat]

5. You had to know this was possible. If a bank could rig the game

so that they profit more when you lose, they'd do everything they could to push you out.

I'm sure we would see more of this if banking records were more transparent.

[TheWatcher]

6. How many did BOA, Citi, JPM/Chase, and the now defunct Washington Mutual do the same to?

I mean if the little fish were doing it.....

[AllentownJake]

7. What societal good are the banks providing at this point?

I mean the same can be said about health insurance companies, but honestly what societal good are these institutions providing in order to be allowed to exist.