8 years ago I aquired a fixed 15 year loan on an apartment building. The loan interest rate was around 7%. The loan has since been adjusted downward due to the interest drop and is now 3.75%.in the prior 7 years I have never heard from the bank. Coincidentally shortly after this drop in rates the bank wants to do a 2,000 appraisal and make me pay for it. Although the loan documents give them the right to request this one has to wonder why a property with a value of more than 500,000 and a loan balance of only 200,000, would be at risk to the bank. Even the tax assesment puts the property at less than 50% loan to value ratio. The answer i believe lies in the fact that the bank doesnt like the terms of the note and the only way to change that is to force a default. How do they do this? They do this by harassing their customers with unnecessary costs and fees to promote default. You see the bank is on a not so good list with the Feds due to its percentage of bad loans and lack of proper reserves. I encourage you to do your due diligence before doing business with this bank. Go to the Treasury website and look up info on this bank. They need to raise capital and I believe they are doing this by harassing their customers to go elsewhere and pay off their loans with a refinance from another institution. Notice to Intercredit! I am going Nowhere! You will live by the terms of your agreement like it or not. I am sure if the shareholders of this bank were aware of its practices and the legal exposure they may create for the bank, they would throw the executives out on their a*es. Unless the Federal regulators beat them to it
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