The real problem is home buyers’ willingness to pay developers/builders before they sign off on the completion of dwelling to specifications. Mortgages in other world are loans to home buyers too, and a lot of them do not limit the liability to the dwelling. But builders in other worlds obtain interim financing in their own to build and can’t get payment from buyers until units are completed to spec and signed off by buyers. And banks released money onto to a trust and wait for the buyers sign off.
The real problem is home buyers’ willingness to pay developers/builders before they sign off on the completion of dwelling to specifications. Mortgages in other world are loans to home buyers too, and a lot of them do not limit the liability to the dwelling. But builders in other worlds obtain interim financing in their own to build and can’t get payment from buyers until units are completed to spec and signed off by buyers. And banks released money onto to a trust and wait for the buyers sign off.