Last week we asked readers whether their banks had started lending again. Here are some of the responses we received.

Reader: Construction financing has completely dried up. The last several projects we’ve done have been financed through the Stock Building Materials Loan department. That division has since been terminated with all of it's employees. Without financing, no more projects. In addition, appraisals for my five-star, certified green homes are equal to some leaky home of the same size. After 35 years in the business, what do we do now?

Reader: Yes, banks are lending, but they are having appraisers use a market approach [that compares the value of new] homes to inventory, which is comparing them with recent foreclosure sales. This has reduced the value of our homes by 30% to 40%. In turn, our buyers who seriously want to buy our homes turn and run. It is also backfiring on the banks. When homeowners who have a buyer for their homes have a bank appraisal and it comes in 30% lower than the selling price, their buyer backs out and they believe this is the true value of their property. They think they are underwater with their mortgage, and they walk away from their home.