Banks-Builders-Developers |Frozen Credit by Carol Best of Coldwell Banker
NAHB | January 2010 | Las Vegas, NV:
At the International Builders Show, as reported by Professional Builder magazine, a survey was taken by builders and developers. The survey found that 70% of the builders/developers had experienced severe issues with banks who were funding their construction projects. The most common issues mentioned were:
1) No warning & lines of credit stopped
2) Builders/developers were current on their payments, but their loans were called
3) Banks did not follow through on their payouts to subs
4) Banks reduced the loan amount - no warning
5) Projects/homes were repossessed because the loan was called due by the bank - NOT by the failure of the builder/developer to make interest payments
6) Banks taken over by the FDIC, all funding stopped immediately - no bank representative was available, on behalf of the client
7) Banks were unwilling to take a modest write-down, but the banks were willing to foreclose at 20 cents on the dollar!
Posted by: Carol Best | Coldwell Banker Real Estate | Licensed since 1992
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