Letter to the Editor: Working With Your Lender
We recently submitted an article to Nation’s Building News (“Five Deadly Sins of Financially Distressed Builders”) that was prepared for an audience facing a multitude of circumstances when trying to resolve loan problems with their lenders. There has been substantial feedback from NBN’s readers, and we would like to further clarify our thoughts.
Our intent at The Algon Group clearly was to provide home builders with some constructive information at a time when the housing industry and financial system are struggling with the most challenging conditions in generations. Unfortunately, the article may have given some the impression that builders and their banks invariably will become locked into an adversarial position when they sit down to resolve credit problems. Quite the contrary, Algon believes the best outcome for lenders and builders is a fully consensual workout where both parties have realistic expectations.
We commend the many banks and builders who have adopted this approach. Builders and developers should be aware that banks are under enormous pressure from regulators and others and they are providing credit subject to these new parameters. The bottom line is that builders need to know their lenders, assess their own situation thoroughly and address loan problems with a well-thought-out and documented plan. Every case is different.
We apologize to anyone who was offended by our article. Obviously, resolving the current AD&C credit crisis is a major concern of the housing industry. We are interested in hearing more from all NBN readers who realize this is a serious issue in these trying times, and responses sent to me or this publication are welcome.
Troy T. Taylor, President
The Algon Group
(Letters to Nation’s Building News can be send to firstname.lastname@example.org.)