It has come to my attention that several large banking institutions are padding their books and giving stock holders faulty information as to how bad the Foreclosure market is really impacting their investors.  We have one client who has a home loan with Bank of America.  He stopped making his payments in February of 2008.  He did not receice a Notice of Default until June of 2009!  This home should have been Foreclosed on over a year ago!  And it's not a small home loan.  He owes over $1,100,000 on the home!  He is not the only client with this bank that we have heard this about.  We have several other people that we know of who have not made payments for over 10 months and still have not received a Notice of Default. 

 

There a slew of Lot Loans and Construction Loans that are in Default.  With Construction Loans being virtually impossible to obtain, many of these land owners are just walking away.  They can not afford to keep making payments on land they will never be able to afford to build on.  WHAT ARE THESE BANKS THINKING?! The Private Investors are NOT Clearly Thinking this through.  They are causing the CRASH in the Luxury Home Market and are going to be sitting on a ton of Vacant Land for years to come!  Currently there are 1136 parcels of Land on the MLS, this does not include all the Broker held Commercial Land available. In the past 12 months only 85 parcels have sold! There are over 300 more custom lots that can not get construction loans.  Bank Of America is one of the LARGEST Lot Loan Holders and has no Consturction Loan Program for home owners.  What are these people suppose to do with their land when the bank they took the loan from with the intent to buy and build has pulled all their construction loans?!  Leaving the owners high and dry!  If the owners had the cash to build they would have paid CASH for the LAND to begin with!  These banks have CRASHED our Market and Left people standing there say..."What Do I Do Now?"  "Will I Ever be able to build?" "Do I keep paying on land that the bank sold to me and then removed all ability to build on?"  The banks deciding ,AFTER loaning $400+ million dollars in Lot Loans, to pull construction loans is like giving a person a car with no wheels or engine and then saying they aren't going to supply the parts to make it run after they bought the body. 

 

The banks continue to made bad decissions and do so while eating up our American Tax Dollars.  What do they care?  They have our BAIL OUT MONEY!  Where is the BAIL OUT MONEY for these Home/ Lot owners?  We are all victims to the bad lending practices of the Banks!  The CEO's are getting their FAT Bonus Checks!  What do we get? We get to continue making payments, if we can, on homes that if we are lucky are worth 1/2 of what we owe.  

 

The WORST Part is these banks are not fully disclosing their bad Assets or the amount of Loans that they have out on Land that will most likely NEVER be developed and faces HIGH RISK of FORECLOSURE!