Thursday, October 1, 2009

Security One Valuation Services - UPDATE from Todd Barfield

It's been about a week since we posted the email from Todd Barfield. He provided some information about what is going on with the FDIC and checks issued to Appraisers from Security One Valuation Services, LLC; many of which were returned to the depositor unpaid.

Since many readers and commenters are still asking questions, and there has been no apparent resolution, we asked Todd Barfield for an update on the situation. Here's what he has to say:

The communications between the FDIC and legal counsel for SecurityOne Valuation Services, LLC (SecurityOne) have been substantially unproductive. We do recognize the FDIC is dealing with a lot of issues other than those of SecurityOne and believe we have established a good working relationship. Therefore, we have been patient in awaiting some meaningful response. However, that patience is near exhaustion. SecurityOne starts from a position of disadvantage; that is SecurityOne is not even sure what the FDIC’s current position is. At this time we have not received any of the requested documents regarding the account at Platinum Community Bank. These documents will be key to resolving SecurityOne’s issues with the FDIC.

SecurityOne is in doubt as to what restrictions the FDIC is unilaterally imposing on significant liquid assets of SecurityOne. However, we simply do not have information adequate to evaluate the potential outcomes.

This is unfortunate for all of us. There have been various threats of litigation from vendors against SecurityOne Valuation Services LLC. We are hopeful that these vendors will reconsider any legal remedies at this time. Consequently, once our vendors begin legal proceedings for collection on SecurityOne Valuation Services LLC, it is most likely the entity will have no choice other than to file for bankruptcy protection. This will not be beneficial to anyone involved and will only reduce SecurityOne’s ability to pay its creditors if the funds are released. Additionally, there would be more government intervention.

Thank you for your patience and we apologize for the inconvenience.

That's all we have for you at this point. Please let me know if you hear any news; good or bad.

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