Home builders, who have good credit and have never missed a single interest payment on their loans, are also reeling in shock, today. Banks are turning down their projects, demanding more security and higher collaterals.
There more bad news. Up till now only the nation’s large home builders had been bearing the brunt but now even the small and medium-size builders are buckling under financial pressure. These small builders build 70% of homes in the US – today, as per rough estimates more than 20,000 builders have already closed their shop in the past 2 years.
Do banks really need to get this tough? To protect their interests, do they have to even take away the ‘bread and butter’ of so many home builders and the people they employ? What will home builders do now? Will things change for them in the near future?