This article is so dumb and misleading I can hardly stand it. I’m 100% certain that Dave Brown had only “not missed a single payment” to his bank because of the “interest reserve” conventions for accounting for construction loan repayments, which I covered here at Piggington many moons ago. The only reason he was able to “make” his payments is because such payments were coming out of his interest reserve, in which the bank is in essence paying itself interest until the project is completed and the loan paid off in full. I’m sure the bank looked at his projects and the new market values and pulled the plug because they rightly saw a huge hole and determined it made no sense to forward this clown even more money – that is, they didn’t want to throw good money after bad. The problem is that so few folks understand construction lending that Dave Brown can misrepresent the situation – while being technically correct – for everyone in Readersville. No, I feel quite sure that Dave Brown’s projects were in the crapper and the bank was just cutting its losses. “I hadn’t missed a single payment” – classic!! Every banker in the country who read that article laughed his ass off at that statement.
