ZH: We have a winner?

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LetItGo
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ZH: We have a winner?

Unread post by LetItGo »

I sure hope not.
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Charlie Mike
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Re: ZH: We have a winner?

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Coworker says their HOA development has halted all unstarted construction because interest rates got so high people can't afford mortgages on already started home construction and are backing out/getting punted by the bank. Keep in mind, that means materials were already paid for and fair amounts of labor committed.

That will likely leave construction companies under capitalized.

It's coming.
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LetItGo
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Re: ZH: We have a winner?

Unread post by LetItGo »

Charlie Mike wrote: September 22nd, 2022, 12:23 pm Coworker says their HOA development has halted all unstarted construction because interest rates got so high people can't afford mortgages on already started home construction and are backing out/getting punted by the bank. Keep in mind, that means materials were already paid for and fair amounts of labor committed.

That will likely leave construction companies under capitalized.

It's coming.
Do you know how good bank bad bank works? Will that protect from daisy chain collateral fail?
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Charlie Mike
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Re: ZH: We have a winner?

Unread post by Charlie Mike »

LetItGo wrote: September 22nd, 2022, 12:39 pm Do you know how good bank bad bank works? Will that protect from daisy chain collateral fail?
I'm not sure this qualifies as a collateral fail.

People are being pushed out of pending loans before those loans are executed because the APR is pushing their projected DTI past acceptable limits. No loan = no down-payment. No down-payment = no capital for new work.
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LetItGo
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Re: ZH: We have a winner?

Unread post by LetItGo »

Charlie Mike wrote: September 22nd, 2022, 12:49 pm I'm not sure this qualifies as a collateral fail.

People are being pushed out of pending loans before those loans are executed because the APR is pushing their projected DTI past acceptable limits. No loan = no down-payment. No down-payment = no capital for new work.
Oh yes I realize that. I was going to my original premise…I don’t think I can get a good take from anyone unless I pour some drinks into them. Ha.
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