Posted on 02/06/2011 9:20:01 PM PST by FromLori
Thousands of commercial mortgage loans worth north of $200 billion will have to be re-financed or paid in full in the coming months, giving business and commercial property owners and the banks that hold these loans some major anxiety.
Listen closely. The faint ticking in the background of the jubilant, media-fueled celebration of America's statistical economic recovery is yet another mortgage time bomb set to explode in our faces and ruin the party. Much has been written and said about the continued problems in residential real estate arena, but the destructive force of defaulting commercial mortgage loans and evaporating equity will soon tear through the heart of the fragile economy, inflicting severe damage throughout the country - and beyond.
In a recent report, the credit rating agency, Fitch Ratings, said that 30% of commercial mortgage-backed securities loans set to mature in 2011 do not pass their refinance test. Another credit rating agency, Moody's Investors Service, said recently that although the commercial real estate markets are making their way toward recovery, most still have not reached a point of stability.
Until now, many commercial property owners have been spared the pain of foreclosure because, with a wink and a nod, banks have been quietly extending performing loans for properties that have lost much of their value. Others are in technical default, but to avoid recognizing losses and taking possession of property they will struggle to maintain and sell, their banks have not yet foreclosed. The result? Imminent foreclosure hangs over the heads and darkens the future for many thousands of American business owners.
(Excerpt) Read more at einnews.com ...
Dead Beat Ping :)
WE, as taxpayers, should foreclose on the white hut and the offal that resides, therein.
I am stunned the commercial bubble hasn’t collapsed yet.
Did you read why though? It talks about it extend and pretend.
Who? Who are these providers?
Yeah, I'm amazed at the gimmicks the banks come up with to forestall disaster - I thought sure it would have blown up earlier. As with all these spit-and-bailing-wire solutions, when she pops, it's gonna be a doozey.
Sounds like digging in deeper to me.
I am over my head and some alternate non banker says..”Hey. I want to help”
My BS siren is spinning.
The story from aegis offers no terms.... we just want to help...
Small Banks Still Failing—Why?
http://seekingalpha.com/instablog/388783-christopher-menkin/109052-small-banks-still-failing-why
CRE “extend and pretend” reaching breaking point
http://www.housingwire.com/2011/01/31/cre-extend-and-pretend-reaching-breaking-point
If foreclosure looms... you don't own it.
Franchises want 2 mil for start up.
What happens when it goes belly up and you are on the hook for some other guys plan? And the bank is waiting?
Then some other guy comes in and says “I love your place”! I have an offer...
I love capitalism and the chance to make it, but, the current business environment sucks.
We are thinking of a pizza place, but it will be our terms.
I am a dumbass conservative.
I see liberals rip off folks they say they care about all the time.
I hate shysters of all persuasions.
Coincidence?
You can get loans like this from insurance companies and investment funds. The building I live in has a mortgage from The Hartford.
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