What Is Going On?

By
Real Estate Agent with Real Living Spectrum Real Estate

I have a client who has also become a good friend. He is representative of what made this country great. He did not, by any stretch of the imagination, come from the well to do class. In fact he did not come from the middle class. He has, as many Americas have, pulled himself up by his bootstraps and today owns his own company. He has also reached the point in his life where he is able to dabble in other things to make hiim money.

About ten days ago he started the process of buying a piece of land where he and a builder friend can build four townhouses. The local government has given thumbs up on the project. My friend has a buyer for one of the lots and they are going to build her a townhouse. Two days ago a bit of a monkeywrench was tossed into the plan. Three banks refused to lend him the money to get the land. One of those banks is the one he has used for years.

Now keep in mind that my friend has an on going business that is successful in this market. He has done everything he was suppose to do to become a success. All of this gained him a 750+ credit score. Yet he was refused the money that would have allowed him to be a producer. This has to stop and it has to stop quickly. The banks, who agreed to misbehave and make huge loans to peopel with a 505 credit score. have decided to become a cacooned industry. If we do not move to get the lenders off square one, we will see more and more people unemployed. That will mean less revenue for the bills that need to be paid. In turn it will be longer before the economy resets.  

Comments (4)

Shannon Gaskamp
Regional Realty - Erlanger, KY
Northern Kentucky Real Estate

I know Chris, I am amazed at the way lenders are seeing things these days.  I would love to see the day that we (as a society) can learn to live without the banks, mortgage companies and credit card companies and we can tell them where to where to go.

 

Feb 04, 2009 04:59 AM
Richard Weeks
Dallas, TX
REALTORĀ®, Broker

Chris,

Sad story.  We all need to write our elected officials and voice our displeasure.  Banks are getting billions of dollars in bail out money but are paying bonuses instead of getting this money out on the street. 

Feb 04, 2009 05:22 AM
Ilyce Glink
Think Glink Media - Chicago, IL
Best-selling author, award-winning TV/radio host.

Chris- This is really too bad. It sounds like your friend has done everything right but the banks won't help him out anymore. What a shame.

Feb 04, 2009 06:12 AM
April Hayden-Munson
Brookfield, WI
Brookfield Wisconsin Real Estate

SO many banks have gotten all kinds of bail out money and they still don't want to lend.  Such a shame! 

Feb 04, 2009 07:39 AM

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