Banks Non-renewing? Fine- Foreclose on my Current Loan Then!

Posted by admin on April 22, 2009 under Good Info - Read It, by Tim Davis | Be the First to Comment

by Bill Davis

General Contractor of Industrial Pre-Engineered Buildings

“Surviving the current economy – An Analysis of bank lending practices of 1979-1983 “

Investment Alert! Warning bells were going off and a sense of déjà vu when I received my second phone call from a commercial real estate investor having problems renewing his commercial loan.

The year was 1983 and the number of bank failures was rising steadily and commercial real estate demand was falling. I had a credit line with Mercantile Bank for $50,000 which was real money back then and I was suspicious that the bank was going to leave me in the middle of the night stealing all my valuables like a disgruntled redhead.

The fact that my loan was current was not in play——-

Today, Mercantile Bank is out of business and Billy Davis is still in business.

2009 once again

The fact that your loan is current is not in play———-

Apparently, some banks think that when an investor’s building is half empty the bank decides that the building owner should pay down the loan making the payment equal to the half empty rent.

The fact that your loan is current is not in play——–

Having no law degree, no business degree, and nothing but scar tissue and gristle on my buttocks, (kicked in the butt, bit on the butt, etc. for 70+ plus years), here is my recommendation; It is 3 phase. Like the electric we install in our Plain Jane buildings.

1) Thank the bank profusely for pointing out the fact that the building is half empty and you need to rent the other half. A business principle you may have overlooked.

2) Take all your lose change out of the bank, checking, savings, CD, your kids Christmas club. The bank can sweep your account causing your wife’s beauty shop check to bounce, which immediately violates a “sex rule”. This matter will come to your attention immediately. No good, really no good.

3) Tell the bank if they don’t like the loan, they should foreclose. Foreclosing on a current loan is good for the bank’s image?

See if your bank doesn’t meet “the standard” the bank examiner yells at the banker “BAD BANK, B-A-D B-A-N-K-E-R”. If the bank forecloses on a current loan, the examiner yells “BAD BANK, B-A-D B-A-N-K-E-R, then rubs the banker’s nose in the loan documents.

No banker wants his nose rubbed in the loan documents. Trust me on this.

According to federal statistics I have survived 11 recessions and 22 banks.

Bill Davis is an industrial develper in the greater St. Louis Missouri area – for more information, visit www.billdavisinc.com, or contact Mary Jo Everhardt at maryjo@billdavisinc.com