Friday, January 02, 2009

Banks Strong-Arm Home Buyers

Banks are strong-arming home buyers to get pre-approved with a direct lender (Washington Mutual, Wells Fargo, Bank of America, etc...) because they have lost faith in mortgage brokers.

These are homes which have been foreclosed upon because of their disgraced lending practices which caused unprecedented losses and a collapse of our financial system. There is even a financial incentive for home-buyers to get a loan from the same bank which owns the foreclosed property.

Can someone please explain to me how banks are able to stick people and put them in some serious financial mess then turn around and borrow from them to save themselves from destruction?

Nobody should be forced to obtain a pre-approval letter from a direct lender to write an offer on a bank owned home. The Southland Realtor Association should ban this practice.

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