Comments on: Beware False Indicators of Bank Health

By: jim

jim — Tue, 22 Jul 2008 16:35:18 +0000

Thanks for the update Jadin. I think that if there is a takeover, they can change the details (chances are the contract does have that contingency written in).

I wouldn’t think that IndyMac Federal would want to be in the loan business, just in the tying up loose ends business.

By: Jadin

Jadin — Tue, 22 Jul 2008 16:06:54 +0000

If anyone cares, apparently they’re “honoring” all agreements at IndyMac, so would assume that’s good news for others in similar positions.

By: Jadin

Jadin — Tue, 22 Jul 2008 03:24:31 +0000

Our WaMu HELOC is at prime, not locked in. This, of course, is great right now. I guess the more global question is whether -should there be a takeover (of any bank)- can the new “owners” change this part of the contractual agreement? Obviously banks have no problem changing the amounts of a line of credit, or freezing it entirely, which I, as well as most others, would have assumed is guaranteed. I think I’ll try and do some research on this tonight!

By: jim

jim — Mon, 21 Jul 2008 18:40:03 +0000

Is that rate locked in? I don’t know much about HELOCs but I imagine they have the freedom to amend it as usual.

By: Jadin

Jadin — Mon, 21 Jul 2008 18:31:03 +0000

i am worried, not about our money in the bank, rather our HELOC at WaMu. We are planning a big remodel using it in the next few months, and while I don’t expect the line to be frozen since our home value is four times the entire LOC plus mortgage, I do worry we won’t have access should WaMu go south. Also wonder what would happen to contractual agreements such as interest rate on the HELOC.
Any thoughts?

By: Carrie @ Moneysavingmethods.com

Carrie @ Moneysavingmethods.com — Mon, 21 Jul 2008 17:34:05 +0000

Wonderful post!

I take advantage and recommend bank deals to my friends, too, and these same thought have crossed my mind.

Thanks for sharing your thought and insight.