The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton – Case Study – Maddie Weinman
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The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton
The current economic climate, financing decisions, and personal factors from Michael Burton himself have all led to this loan being in default. During the commercial property boom of 2005-2006, property owners borrowed huge sums of money directly from commercial banks, and indirectly from investors through the sale of commercial mortgage backed securities. When the economy began to weaken in late 2007, rents went down as vacancies went up. Because of this, property owners were not able to meet their loan obligations made during the boom, and the amount of delinquent loans rose.
Poor underwriting on the loan is another reason for its default. The property had been overvalued at $1,350,000 by Colonial Bank. Colonial lent $1,250,000 to Burton, meaning the loan had a 92.6 loan-to-value ratio. The fact that Colonial Bank approved this high LTV is worrying, and it is no surprise that the bank was taken over by the FDIC in 2009. Despite this, Burton remains responsible for making the payments.
The sales of each of the businesses depend largely on the local community, which is primarily Hispanic. With the recent tightening of immigration laws in Georgia, along with the downturn of the construction industry, the Hispanic community was negatively affected, leading to a decline in sales. Despite the bad economy, Northwinds Community Crossing is fully occupied. All tenants have triple net
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(2019, 02). The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton. EssaysForStudent.com. Retrieved 02, 2019, from
“The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton” EssaysForStudent.com. 02 2019. 2019. 02 2019 < "The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton." EssaysForStudent.com. EssaysForStudent.com, 02 2019. Web. 02 2019. < "The Current Economic Climate, Financing Decisions, and Personal Factors from Michael Burton." EssaysForStudent.com. 02, 2019. Accessed 02, 2019. Essay Preview By: Maddie Weinman Submitted: February 18, 2019 Essay Length: 391 Words / 2 Pages Paper type: Case Study Views: 136 Report this essay Tweet Related Essays Were Economic Factors Primarily Responsible for Nineteenth-Century British Imperialism? Were Economic Factors Primarily Responsible for Nineteenth-Century British Imperialism? In society today the almighty dollar is what motivates most people's actions. However, there are other 529 Words  |  3 Pages Economic Factors Have Been of Dominant Concern in Australian Foreign Policy Decisions over the Past 25 Years âECONOMIC FACTORS HAVE BEEN THE DOMINANT CONCERN IN AUSTRALIAN FOREIGN POLICY OVER THE PAST 25 YEARS.â During the past 25 years, Australian Foreign Policy has 2,134 Words  |  9 Pages Dell Computers - Economics for Managerial Decision Making Dell Computers Economics for Managerial Decision Making ECO 533 July 28, 2004 Executive Summary Although the idea of electronic commerce (E-Commerce) has been around for 251 Words  |  2 Pages Beo 3368 International Economics and Finance BEO3368 INTERNATIONAL ECONOMICS AND FINANCE SEMESTER 2, 2008 ASSIGNMENT 1- I.D 3723708 PART A Using appropriate diagrams illustrate how the (static) efficiency gains from the 1,001 Words  |  5 Pages Similar Topics What economic and social factors should Fresh Fields managers watch Factors Affect Current Flowing Wire Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008â2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter