Bill Degar

If you have an SBLC that you need to turn into liquid funds, but don't have the income stream to repay the loan, we can help. SBLC = owned, cash backed & $25 MM Minimum

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For many years, those of us in the Real Estate business, both in sales and financing have heard the rumors. The big banks looking to leverage out the smaller banks, at any cost(well $700 billion is not a bad start), so they could have control of Real Estate sales and values. While we watch this crisis grow and take away people's nest eggs, both with the value reduction in their home and the loss of trillions of dollars in IRA's and other retirment vehicles, we start to see the greediness of these banks and there attempts to control the market. Here is a nice little lawsuit going on just to give everyone a taste:

Hagens Berman Files Class Action Against Countrywide October 17, 2008

A group of Idaho appraisers have filed a class-action lawsuit against the Bank of America-owned Countrywide Financial Corp., claiming the lender used strong arm tactics, intimidating appraisers to generate reports and "blacklisted" some for not cooperating with the company. The lawsuit, filed in U.S. District Court in Seattle, claims Countrywide forced appraisers to use improper appraisal techniques that benefited the lender. BoA/Countrywide is the nation's largest residential lender, according to figures compiled by the Quarterly Data Report. The lawsuit claims Countrywide's actions caused "substantial damage to thousands of appraisers on top of distorting real estate prices in the marketplace." At press time, a spokesman for BoA had not returned a telephone call about the matter.

I have seen this first hand, as many people try to refinance their property to keep their heads above water, while the lenders attempt to control the market, just like the traders in the market, use short seeling to control stock price.

It is the lenders intent, to have each and every loan backed by Borrower paid mortgage insurance, thus hedging their bets in giving the loan. DON'T LET THIS HAPPEN TO YOUR CLIENTS. There are still a few individual lenders, dealing directly with Fannie and Freddie, who are not squezzing each and every American out of their dream. If your lender comes back with an AVM value, move the loan. If your lender forces you to use their appraisal company only, move the loan. If your lender forces you to use their credit reporting agency(Countyrwide again!!!), move the loan. Just the way the large lenders are trying to control values, they are doing the same with credit. If you want to test it, pull a credit report from a credit reporting agency not connected to a lender and then pull one that is connected, on the same day. These companies that are supposed to have the same information, do not, and this is reflected maninly in the scores. You will notice that the lender controlled credit reporting agency has scores 8 to 10 points lower, again pushing the client to pay fees to the lender, that they keep, when they sell the loan to Fannie or Freddie.

AS REAL ESTATE PROFESSIONALS, WE MUST FIGHT FOR OUR CLIENTS RIGHTS AND KEEP THEM INFORMED OF THEIR RIGHTS .

Wow, I thought this might have made me feel better, but it just made me more angry. I guess I'll go hit the heavy bag and see if that works.

Good Luck and God Bless to everyone.