What About Commercial Real Estate? The Woes: Leveraging a Thing of the Past
With all the press on the subprime residential foreclosures, the commercial market has not received as much press. Commercial delinquencies are at an 11 year high. The problem relates to the tightening of credit. Loans are maturing and access to refinancing credit is nearly non-existent. Securitized Commercial Lending helped push property values up over the last decade. With the shut down of this lending, property values dropped. Some Investors overleveraged their property, which spelled disaster with the dropping values. These commercial investors are finding themselves in similar circumstances as the subprime residential buyers, with the exception that their loans are actually ballooning in one of the worst refinancing markets. See More about on commercial delinquencies ---> http://bit.ly/ZxQrM
TrackBack
TrackBack URL for this entry:
http://blog.josephandjoseph.com/mt/mt-tb.cgi/6427
