The Real Deal Miami

Builders call for loan repayment break

December 01, 2008 11:58AM

Local and state homebuilders, faced with a spate of lenders changing
the terms of their financing, are seeking federal assistance to slow
the pace at which banks call in their loans. Ashley Bosch, new
president of the Builders Association of South Florida, said
reappraisals and new terms are prompting the lowering of loan values as
banks ask builders to pay back the difference between the loan and the
new appraised value. This is also occurring with loan holders who ask
for extensions on loans.