Economy forces foreclosure lenders to reassess construction risks
Commercial developers are suspending construction projects as a result of the failing economy, urging foreclosure lenders to re-examine the associated risks. Abandonment of construction projects has hit a 30-year high, according to Reed Construction Data, causing a dramatic shift in options for lenders. "In the old days, banks that foreclosed sold the property to another developer and would make OK money," said George Dale of Aon Risk Services. "Now, banks are seriously considering going into the land development business."
Business Insurance
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This story published in PCI SmartBrief on 11/02/2009
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