Commercial Real Estate Defaults

October 26, 2009 by  
Filed under Blog, Commercial Real Estate Defaults

A Real Estate Collapse is on its way, and there is nothing we can do about it! The closing of the Corus Bank located in Chicago was a large indicator that we are going to see the next flaw in the banking system, which lies at the heart of commercial real estate loans beginning to default.

With commercial real estate loans beginning to default, many banks will be facing large numbers of debt on their end, forcing them to foreclose. Banks will be reluctant to refinance as property values continue to decline drastically. Most banks don’t want to extend credit terms when they know that these commercial properties will be worth less than what they once valued at 2-3 years ago.

In the next year we will see more and more commercial properties go into default. Make sure you consult with your lender before you go into default.

Housing Assist Coldwellbanker