Thursday, March 30, 2006
Lenders Digging In
Two words; “lenders nervous.” Truth be told; lenders scared. Not coincidentally I had two friends call yesterday both complaining about their financing falling through. First one paid $5500 for the banks’ appraiser on a small commercial property and when it made the numbers the bank suddenly added new conditions. Conditions based upon the banls’ intimate knowledge of their position designed to make them balk. She told them straight out, you just don’t want to make this loan right? They admitted it off the record. Second in a house sharing arrangement for a dozen years, executor and a tragic roommate death. The bank just said no at the last minute. I told them both the banks are slowing the velocity of lending and building warchests against the flood of defaults. The agreed from their frontline observation points.