At the recent PV AMPI Chapter monthly meeting Terence Reilly of MexLend spoke about how financing has been going for his and other mortgage brokers and lenders in the Puerto Vallarta area. He said that in previous years, the market had been driven by people taking out home equity loans (HELOCS) on their homes in the USA or Canada, or cashing in stocks. In today’s market, this is no longer a valid option. So financing in Mexico has become more popular.
In 2007 his company did $20 million in real estate transactions. However, in 2008 they more than doubled their business with $47 million in transactions. The industry has lost some lenders, but also picked up some new one’s, such as Deutche Bank. One lender has a program to lend against your stock portfolio – very creative. And he mentioned that they can now do loans for property owners that want to have the property in a corporation.
Good news is that in 2008 only two foreclosures were reported. This is primarily because there just haven’t been many loans that could be foreclosed on! But that’s certainly good to see against what’s happening north of the border.