because of a well documented culture of corruption in Washington, DC & State Capitals, the consumers and taxpayers frequently finish last behind businesses that
Washington, DC (PRWEB) November 27, 2006
The Homeowners Consumer Center and its partners the National Mortgage Complaint Center/Homeowners Consumer Center have just released their US real estate outlook for 2007. This information was compiled as a resource for consumers seeking facts about the realities facing an average consumer/homeowner attempting to wade through the murky mortgage/real estate waters in 2007.
Homebuilders, real estate agents and mortgage lenders have created the environment that will give us a continuation of the deteriorating US real estate market in 2007 based research by Americas Watchdog (http://AmericasWatchdog.com)
The Top five Real Estate Issues Facing US Consumers in 2007
Issue number 1. So how or why did the real estate bubble burst happen? For the last six years homebuilders, real estate agents & mortgage lenders have forced real estate appraisers into coming up with inflated appraisals. According to many appraisers who were interviewed; "if we did not give the "client" (homebuilder-lender) the inflated appraisal number, we got black balled". In formerly hot markets like Las Vegas, Phoenix, Miami & San Diego; markets could easily dip another 10% in 2007. (in addition to the 10% 2006 correction).
Issue Number 2. Real Estate "flippers" also played a major role in our nations current real estate crisis. Many of those who purchased in 2005 or 2006-hoping for a quick profit- may not even be able to sell their investment property for what they paid for it. Since many "flippers" used 100% financing, this could mean distress sales or even massive foreclosures, further depressing real estate markets. This affects 100'000's of residential properties in the US. This could be a large issue for price stabilization in many US real estate markets in 2007.
Issue Number 3. In the last five years, over half of all new homes in the US were built by undocumented workers/illegal aliens according to organized labor insiders. This reality affects literally millions of homes that may now have construction defects. In most cases the undocumented worker could not read or write English. These same homebuilders frequently classified undocumented workers as "1099 subcontractors" so they could avoid the payment of Federal or State taxes (billions of dollars in unpaid state/federal taxes). If you are in the "news media" go out to a residential construction site and see for yourself" ( we suggest Palm Springs, or Phoenix,-take someone who speaks Spanish) Construction defect issues could also diminish a sellers ability to sell their "new" home. This reality also clouds the housing outlook for 2007. For additional information visit the Corporate Whistle blower Center on the Americas Watchdog web site "Who built your house".
Issue Number 4. Homeowners/consumers need to be wary of predatory mortgage lending practices in 2007. Americas Watchdog is strongly advising consumers to keep their mortgage business with a local mortgage broker. Americas Watchdog is advising consumers to use mortgage broker's instead of banks/mortgage bankers because banks/mortgage bankers are not required to disclose a kick back scheme called a "yield spread premium" for increasing the borrowers interest rate/monthly mortgage payment. Americas Watchdog is advising consumers to go to Bank Rate.Com to see what prevailing mortgage interest rates are, and then start asking lenders about their fees (before a credit report is pulled & before any fees are paid). Consumers are also welcome to have their proposed mortgage documents inspected for over-charges prior to closing by Americas Watchdog. Their family of Homeowner/Consumer Protection web sites & services can all be found at Http://AmericasWatchdog.Com
Issue Number 5. How does Congress provide any type of oversight when the very industry's they are supposed to be watching are their largest campaign donor's (banking, Defense, Energy, Etc)? Banks & Mortgage Bankers do not have to disclose yield spread premiums, but mortgage brokers do? According to Americas Watchdog, "this is a ridiculous double standard that adversely affects millions of homeowners nationwide". If US House Speaker Nancy Pelosi is serious about ethics and integrity, the new Congress should adopt regulations that insure 100% transparency in the mortgage process to include homebuilders, banks, mortgage bankers & brokers disclosing "yield spread premiums" to consumers. At the same time Congress needs to talk about a national ID card so that all new US homes are built by documented US citizens, or guest workers. Lack of transparency in the mortgage/home building process has led to the current crisis with many of our nations real estate markets. Lack of a National ID card has cost the tax payers 10's of billions of dollars in tax fraud on the part of homebuilders.
Americas Watchdog is committed to Consumer Protection and Corporate Fair Play. According to Americas Watchdog,"because of a well documented culture of corruption in Washington, DC & State Capitals, the consumers and taxpayers frequently finish last behind businesses that "purchased influence" from our "leaders". "Because of this many real estate markets in this nation are now at risk and millions of US homeowners were sold a bill of goods by a homebuilder, a mortgage lender or both". Many of these issues could have been avoided had the Federal or State Governments been more focused on compliance & oversight. For more information about their mortgage, homebuilder tax fraud or construction defect initiatives consumers or members of the new media are welcome to contact Americas Watchdog at anytime.
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