"Construction lending is really the cocaine of the banking industry..."
At least it was... until 17% of them went into default ...
"If a bank forecloses on a house, it's a house. Everybody knows what to do with it,..But if you're dealing with a half-constructed hotel or a half-constructed strip mall, not only does no one want it, you now have to maintain it" ... many bankers have chosen to wait it out, extending the terms of loans to troubled developers to keep from having to foreclose and take possession of a half-built headache. Which leaves bad loans and troubled property in limbo...
- USA Today article
Older, Wiser (Maybe), I'm Back
2 months ago
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1 comment:
This is so true! I don't care where you live, you do not have to travel far from where you are right now in this tristate area to see evidence of this sad condition.
And as an aside, I think the ugliness of these half-built and rundown buildings affect the mental state and pride of the people who live around them. Basically, I think there is more to this issue than what is seen on the surface.
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