The Wall Street Journal says that subprime woes have started to put our nations small and midsized home builders in a difficult position. And as the home builders go so goes the regional banks…
Bill Whitlatch, longtime owner of one of the leading home builders here in northeast Ohio, is among the casualties. Three years ago, he borrowed from regional banks to start six developments in the Cleveland area. Soon the region’s home market turned cold. Buyers vanished. Mr. Whitlatch drained his personal savings of $2 million to keep his company going.
It wasn’t enough. In September, the company filed for bankruptcy protection. Now owing about $1 million to dozens of subcontractors, and $8 million in debt to his banks, Mr. Whitlatch is selling the family home he designed.
Mortgage Mess Hits Home For Nation’s Small Builders [Wall Street Journal]