Home builder and was hit hard by the economic downfall

Assignment Help Microeconomics
Reference no: EM13688714

You are a Custom Home Builder and was hit hard by the economic downfall of 2008 in the housing market. You have a 100-acre subdivision with $19,000 a month payments on a land and development loan of$1.8 million. You have already invested $575,000 of your own money in the venture. You also built three houses to sell in your subdivision and have been using the construction loans to keep the land development loan up to date. Needless to say, you are desperate because the buyers have not shown up in this economy and the one home you built has a buyer who had taken a questionable loan she was not qualified for so defaulted. That means a defaulted home loan is sitting on one of your $50,000 lots which you will lose. Over the weekend, a big city bank took over your local bank and called the loans on all builders in your county. It looks like you must consider bankruptcy. Explain what you would do in this situation and how you came to your conclusions. If you decide for bankruptcy, how would you go about this?

Minimum 300 words

Reference no: EM13688714

Questions Cloud

Consumers treat the goods as compliments or as substitutes : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
Home builder and was hit hard by the economic downfall : You are a Custom Home Builder and was hit hard by the economic downfall of 2008 in the housing market. You have a 100-acre subdivision with $19,000 a month payments on a land and development loan of$1.8 million.
Determining the buying power of an economy : Determining the buying power of an economy can be accomplished through the use of the ___________.
Gasoline over the course of a week : Consider the following pair of goods. For which of the two goods would you expect the demand to be more price elastic? Why? Gasoline over the course of a week or gasoline over the course of a year. Personal computers or IBM personal computer
Production points along a production possibilities curve : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Ms smith the owner and manager of the clear duplicating

ms. smith the owner and manager of the clear duplicating service located near a major university is contemplating

  Explain utility of that good or service to immediate

select an organization with which you are familiar or in which you are interested that provides a private good or

  Use solver to maximize bloomington brewerys revenue explain

bloomington brewery produces beer and ale. beer sells for 5 per barrel and ale sells for 2 per barrel. producing a

  At what price should the firm shut down

Assume that the price of silk ties in a perfectly competitive market is $17 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 8 9 10 Total Cost 17 24 33 44 57 72 89 108 129 152 177

  Rate of growth in the productivity of labor

The rate of growth in the productivity of capital is one percent the rate of growth of capital is two percent the rate of growth of labor is one percent and the rate of growth in the productivity of labor is three percent. From this we know that per ..

  A description of blue ocean strategy and its importance

A description of blue ocean strategy and its importance

  Describe at least 3 criteria that would determine whether

describe at least 3 criteria that would determine whether the manager is making good decisions. what should be done to

  Real estate brokerage market in the us

In the United States real estate brokerage industry, brokers employed by large brokerage companies have traditionally worked for a portion of the commissions they generate.

  It also previously raised its price from 21 to 23 rivals

suppose that an oligopolistic is charging 21 per unit of output and selling 31 units each day. what is its daily total

  Why interest -related expenditure ire function is vertical

In a closed (no foreign sector)mixed economy with stable prices if we assume that consumumption and investment spending do not depend on the interest rate,can we conclude

  Ait is estimated that 18 years from now college tuition at

a.it is estimated that 18 years from now college tuition at the university of hartford will be 42000 per year. if your

  How is the life-cycle pattern of income

Question 1. How is the life-cycle pattern of income related to the measurement of income equality at a point in time? What are the differences between social insurance programs and income assistance programs?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd