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or is credit drying up? Anyone had any experiences with applying for loans in Costa Rica lately?
Stan Putra
President
BBEEdited on Oct 09, 2008 16:38
Do you mean in the states? My mortgage banker says they still have home loan money, as do some of the other small, local banks, I’m here in Asheville NC, where there is a Wachovia on every corner, no $ from them!
Where I see the upcoming problem is everywhere you look in my area there are commercial projects, either completed and mostly empty or in some phase of construction (strip malls etc). Those projects have been using our small, local banks and I suspect they will be in serious trouble in a few months. No one is starting small business and I can predict a ton of others going out. This area also saw very rapid residential development, the Florida developers bought up acreage and slapped in neighborhoods, again in various stages of completion, I think the small banks will be holding onto their cash and the bigger guys dont have any.There is still credit available, but your credit rating (which is a farsical system)pretty much has to be 720 or higher and/or you must have significant assets clear of any liabilities. Good time to buy if money is available.
We are helping a neighbour to sell his condo. This is what a very interested buyer wrote a few days ago:
“Realmente estoy muy interesada en el apartamento, pero actualmente tengo muchos problemas por el aumento tan exagerado que han tenido los bancos actualmente. Porque en menos de un mes estaban al 8.5% y actualmente subieron al 12% y donde la mayoría serraron los créditos, quisiera saber si este apartamento esta libre o tiene alguna hipoteca sobre ella, y como es la forma de pago que ofrecen.”
Not only difficult in the States to get a mortgage……
That is a huge 41% jump sumaSAL!! Es muchisimo!! Aqui el aumento todovia es 5.75% para 30 anos. But your credit has to be near perfect, the banks want to see 3+ years of employment history in the same place and will not lend more than 80% of the value of the home = 20% down.
Which lenders here can loan money for purchases ? Banco Improsa and Banco Nacional apparently are not lending at this time . I have had a unprofessional experience with HSBC . Can you recommend any other bank that lends in CR . Good credit and 40% down payment .
The private banks – Banco San Jose, ScotiaBank, Banex, Interfin and talk to the folks at Costa Rica Mortgage http://www.costaricamortage.net
Charlie: I am working with a fellow right now who bought a lot with his cash and obtained a mortgage through a National CR Bank. The bank pulled out and left him high and dry at he last minute, even after promising him time and time agian, all was a go.
Don’t fret about the unprofessional experience with HSBC. I’ve dealt with just about all the banks in CR. All the banks, bank managers and employees are the same. You have to learn to accept the culture. HSBC is as good as it gets.
Pura Vida
Arent there HSBC branches in the US? and could you put dollars into a US branch and move it to CR-without the wire transfer process?
I’ve already looked into that, Tracy, and the short answer is “Yes”.
HSBC can offer you an International Premier account into which you can deposit funds in the U.S. and from which you can debit funds here in Costa Rica. The only drawback is that you must maintain a $100,000.00US balance.
We bank at HSBC here in Costa Rica and find their bureaucratic procedures about as awful as any you can imagine, but the local branch folks are great. To move funds from our U.S. bank to HSBC here, we go in every month and write a check against our U.S. account. HSBC holds the check for about twelve days, but the deposit is certain, and it’s free.
No, we write our monthly check on the bank that used to be Wachovia. As you’re no doubt aware, Wells Fargo has or is about to buy Wachovia, so who knows what’ll happen in the future, but so far there’s been no problem depositing a non-HSBC check into our Costa Rican HSBC account.
I should point out that we’ve had our Costa Rican HSBC account for a couple of years. Those who have recently opened accounts at HSBC here have been told that the bank will not accept a check for deposit until the account has been open for six months. Go figure . . .
An electronic image of our check is available from Wachovia’s website a couple of days after we deposit it, but it takes about twelve days ’til HSBC here in Costa Rica actually credits it to our account. Go figure . . .
Please see new thread related to the overall US financial crisis entitled: ARE YOU NOT YET SCREAMING HYSTERICALLY ANGRY! at [ https://www.welovecostarica.com/members/forum/openthread.cfm?forum=1&ThreadID=2474 ] I would love to hear your feedback, especially from our American friends.
I can tell you quite bluntly that I am most definitely screaming bloody angry about it!
Scott Oliver – Founder
WeLoveCostaRica.com
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