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CNN: Defaults of convenience
The defaults do not always result in foreclosure or sale of the business; at times, defaults are used tactically to force concessions from lenders. “[Often] there has to be a default before the terms of the loan can be renegotiated,” he said. “And the loan is a lot higher than the property is worth.”
That means that some of the defaulting properties, such as the Four Seasons, are in little danger of shuttering; their owners just want to force their lenders to make the terms of their loans a bit more attractive.
