The Credit Crunch is Not Over

JACKSONVILLE, FL -- There's no shortage of homes for sale. They are all over the place.

But where there is a shortage is the money to buy a home. "I haven't applied on a loan in a while," says Angel Mojica.

Mojica is going to the bank, but not for a loan. He says it is too hard to get approved, and he is right.

"Most folks are still having trouble getting loans either for homes or business loans. And folks already having problems are having difficulty getting the banks to talk to them to resolve the situation," says attorney Don Lester.

Lester says he has several cases right now where people can't even get the banks to talk to them in order to modify their loans.

"The irony is with all the bailout money they've gotten, it's extremely difficult to get even anyone to talk to about a loan modification."

Lester says one place some people are seeking help is a credit union. "The credit unions actually did not encounter some of the problems commercial banks did because they did not get into some of the riskier loans."

Those banking at a credit union, like Mojica, say the terms for loans are better at credit unions. "It's a little more relaxed."

The credit crunch is expected to continue for at least another year.

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