Saturday, November 15, 2008



SHit shit shit.

I just got this from helpful James Johnson at CR mortgatge:

"Ok, I just got word back from them and I hate to have bad news, but here it is. As of this week, they just instituted a new policy that they are no longer lending to Non-residents. They have made an exception in your case, but this is gonna require some drastic things from you. They require that for every $100K borrowed, that you must put $166,666 into a CD in the bank and hold it there for a minimum of 1 year. The return interest rate depends on exactly how much is deposited. This makes no sense to me, as I am sure to you as well. Unfortunately with the credit crisis worldwide, the banks across CR are running out of money to lend and they are requiring steeper and steeper conditions in order to lend. "

The banks here are cutting off lending to Non-residents all over the place. I started out with 12 lenders at the beginning of the year and I am down to 1 with very difficult terms to qualify..."

Wow. THis is not, of course, the end, but a serious road block. I am sorry to those of you still following this as I am to everyone who is emotionally and professionally invested in it on my end. This is really bad news.

Any and all advice is welcome.


Blogger kirk said...

you've got to sit on this project for awhile (not that you haven't been already). let the economy turn around and go with a domestic lender. i'm dealing with the same crap on my project in Marbella.

santa cruz, ca

5:51 PM  
Blogger DuhMan said...

Sorry to hear the bad news and while it is little consolation, at least commodity prices are plummeting like never before. By the time you build, your resources will be cheap and builders will be desperate for your business ;-) Also, if you live off mac & cheese you might save up the funds by the time you get the loan to clear ;-(

Pete, waiting on Mal Pais.

10:42 PM  
Anonymous Anonymous said...

Sorry to hear the news - it's a great project and I hope to see it finished soon! I have been trying to email you Michael, but you seem to have change your email. Cheers! Luis Diego Quiros.

10:12 AM  

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