Part 3/9:
With lenders pulling back, the consequences have been tangible. Private lenders—distinct from traditional banks—play a pivotal role in financing these speculative investments, especially in neighborhoods where banks are hesitant to lend. When loans default and properties sit vacant, trust erodes, further impeding efforts to rehabilitate and reoccupy homes. This hesitancy has left many properties in limbo, fueling a cycle of disinvestment and decay.