Helping our clients buy buildings is an aspect of our business that we really enjoy. However, I have to say I am not convinced that the banks are truly lending in this economic climate. We recently had a client who was looking to buy a very small building. Getting a mortgage should not have been an issue……and yet, 45 days into the due diligence period the bank came back with an approval – if you could even call it that. They told the buyer they would give the mortgage in 6 months, and only after the client deposited and kept $10,000 in their bank and kept it there for that period of time. Apparently the bank in question did not have enough deposited on hand to make the loan.
After talking with several other people in related businesses, I found we were not the only ones to experience this situation. I am wondering have any of you had a similar experience? Do we think it is a product of our economic situation?
Source:Compass Commercial Blog