Construction Developer Says Banks Suddenly Playing Hardball, Asks "Mish, What's Going On?"
Today I received an email from "Construction Insider" concerned about banks suddenly playing hardball and calling in construction loans.
Construction Insider writes:
Construction Insider writes:
Hi MishREAD FULL STORY HERE
I work in the construction business and something has been creeping to the forefront of my attention for the past few weeks and now it seems to be moving full steam ahead.
Banks are forcing developers/builders (especially smaller ones) to give up their properties (unsold homes and lots).
Banks say the reason is that the properties in question are no longer performing assets. I am sure there are some loans out there that are not performing and the owners are going under. I am equally sure that there are plenty of developers that are still selling homes - just not at the pace originally planned on the pro formas.
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