Posts tagged as:

commercial loan modification

Coming commercial crisis will be painful for communities

by Moe Bedard

The new round of financial pain, which some had anticipated but hoped to avoid, now seems all but certain. “There’s been an enormous bubble in commercial real estate, and it has to come down,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, the watchdog created by Congress to monitor the financial bailout. “There will [...]

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The Coming Commercial Foreclosure Crisis: It’s Gonna Get Ugly Folks

by Moe Bedard

As if the foreclosure mess weren’t enough to keep you up at night, today we’re also digesting a new report from the Congressional Oversight Panel (that’s Elizabeth Warren & Co, the TARP watchdogs) about the looming storm in the commercial real estate market. The report predicts a wave of losses, totaling $200-$300 billion, from commercial [...]

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Commercial Investors Betting on Bad Debt

by Moe Bedard

With most if not all facets of commercial real estate investment mired in the dumps, one area is burgeoning — the market for distressed debt. Indeed, investors say the distressed debt market is more active now than it has ever been, and still nowhere near where players see it going over the next couple of [...]

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This is a recipe for the greatest commercial depression EVER!

by Moe Bedard

Who spiked the bankers cool aid? Or better yet, I think these guys must have been smoking some wacky tobaccy at their latest shin dig in Las Vegas this week.
The article below is titled, “Optimism Trumps Gloom at MBA Real Estate Finance Conference in Glitter City.”  Apparantly the Mortgage Bankers Association is predicting a better year [...]

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Commercial market is hot for court appointed caretakers

by Moe Bedard

These are boom times for receivers. With the brutal real estate market causing owners to lose their buildings to their lenders, more professionals like Hoffman are being tapped to look after properties until they can be resold.
Hoffman is managing about three times as many properties across the country as he was 18 months ago, and [...]

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FDIC’s Sheila Bair urges banks to take losses on commercial loans

by Moe Bedard

Sheila Bair, chairman of the Federal Deposit Insurance Corp, said banks should try to modify troubled commercial real estate (CRE) loans, but must recognize losses if such a workout does not maximize value.
“The losses need to be recognized,” Bair stressed to a conference of the Commercial Mortgage Securities Association.

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Chase CEO, Jamie Dimon says commercial real estate is a train wreck

by Moe Bedard

SAN FRANCISCO (MarketWatch) — J.P. Morgan Chase Chief Executive Jamie Dimon said commercial real estate is a “train wreck” during a speech Monday, but noted that many of the problems in the sector have already happened and won’t affect the economy too much.
Dimon also said financial regulation is needed, but described the return of the [...]

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California Hotel Foreclosures Quadruple in 2009

by Moe Bedard

“Hotels are being foreclosed on and reselling at very low, low prices. A lot of people question if they should keep paying. As bad as the numbers look right now, it’s going to get a lot worse.”
Jan. 7 (Bloomberg) — Hotel foreclosures in California more than quadrupled last year as business travelers and vacationers cut [...]

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Commercial Loan Delinquencies Soaring

by Moe Bedard

NEW YORK, Nov 30 (Reuters) – The default rate for commercial real estate loans held by banks reached the highest in 16 years and the outlook looks worse, according to a report by a research firm released on Monday.
* Commercial real estate bank-loan defaults hit 3.4 pct

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Commercial Real Estate Blood Bath to Begin

by Moe Bedard

Commercial real estate — including shopping centers, office buildings and industrial property — will hit a low point in 2010 not seen since the Great Depression, according to a national survey of real estate executives.
Values and rents will plunge, and vacancies and defaults will soar across all types of commercial property before the market rebounds [...]

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U.S. Banks to See Sizable Losses on Commercial Property

by Moe Bedard

U.S. banks are at risk of sizable new loan losses, particularly on commercial property, and some banks may not have sufficient capital to fully cushion against losses, a Federal Reserve official said on Monday.
Some large regional and community banks that have built up unusually high concentrations in commercial real estate loans will be “particularly affected” [...]

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US Bank Regulators: “Prudent” Commercial Loan Modifications

by Moe Bedard

* Regulators urge “prudent” commercial loan modifications
* Commercial real estate seen as trouble spot for banks
By Karey Wutkowski WASHINGTON, Oct 30 (Reuters) – U.S regulators on Friday encouraged banks to modify troubled commercial real estate loans, which are seen as a looming danger spot for the banking industry.
The regulators issued guidance to financial institutions and [...]

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“Huge Commercial Real Estate Crash Coming” – Wilbur Ross

by Moe Bedard

This has been mentioned on my blog for the last two years and now it looks like the dominoes are really starting to fall in commercial real estate. I am predicting the crash of 2010-2012 will wipe out 25-40% of all small to large sized US businesses and thus devastating the commercial sector.
The trickle down affect from lost jobs, more [...]

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Commercial foreclosure crisis to swallow local economies

by Moe Bedard

The impending  commercial foreclosure crisis will be one like our nation has never seen. Once bustling buildings of commerce, now many commercial projects have turned into ghost towns of economic destruction. With vacancy rates sky rocketing, tenants not paying rent, bankruptcies galore and that fact that no one is buying anything, can only mean one thing.
The commercial [...]

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Commercial mortgage backed securities begin to haunt investors

by Moe Bedard

The loans behind Maui Prince were financed by commercial mortgage-backed securities, or CMBS. The resort’s failure reflects the troubled market for these bonds, which are backed by a pool of mortgages on commercial properties. The market for CMBS is one leg of the stool supporting the commercial real estate sector, providing a vital source of [...]

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California Hotel Foreclosures Triple in Travel Slump

by Moe Bedard

Hotel foreclosures in California more than tripled in the first nine months of this year as business travelers and vacationers cut spending.
Foreclosures including the 400-room St. Regis Monarch Beach resort in Dana Point climbed to 47 in January through September from 15 a year earlier. Properties in default more than quadrupled to 259, Irvine, California-based [...]

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IRS Issues Rule To Aid Commercial Real-Estate Sector

by Moe Bedard

Owners and developers of commercial real estate will now have more flexibility to rework their mortgages or obtain loan extensions under a new federal tax rule, a change that could aid the troubled sector.
The new rule, issued by the Internal Revenue Service, will affect loans backed by shopping malls, office parks and other commercial properties [...]

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For Commercial Real Estate, Hard Times Have Just Begun

by Moe Bedard

As the commercial real estate market heated up earlier in the decade and lenders competed feverishly to issue ever-riskier mortgages, hundreds of bankers, investors, lawyers, brokers, appraisers, accountants and analysts flocked to an investors’ conference in Florida each January to celebrate their good fortune with lavish beach parties featuring bikini-clad models and popular entertainers.
But in [...]

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Commercial Real Estate’s $1 Trillion Time Bomb

by Moe Bedard

According to analysts at Deutsche Bank AG, as property value declines and scarce credit continue to drive commercial property developers and investors into default, total lifetime losses on banks’ $1 trillion “core” commercial-mortgage holdings, or those backed by income-producing properties, would reach between 11.6% and 15.3%, or $115 billion and $150 billion. Those expected losses [...]

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California hotels flood the market

by Moe Bedard

LA TIMES – Los Angeles County has the highest number of troubled hotels: 27, including the 469-room Marriott in downtown L.A., according to a new Atlas report.
With the trend expected to continue throughout 2009, as many as 500 properties could be in default by year’s end, Atlas President Alan X. Reay said.
Read more from the [...]

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Number of Hotel Foreclosures, Defaults Increasing

by Moe Bedard

TOURISM: Values Have Declined 50% to 80% in Last 3 Years, Broker Says
The number of California hotels that are in default on their loans or have gone into foreclosure has jumped a whopping 125 percent in the past 60 days.
There were 32 properties in foreclosure and 174 in default, according to a June 28 report [...]

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Commercial Foreclosures: US programs seen too late to stem foreclosure wave

by Moe Bedard

* CMBS default rate could hit 3.5 percent by year-end
* Bank default rate could reach 4.8 percent in 2011
* Commercial real estate prices may fall 35-45 pct from 07 peak
 By Ilaina Jonas
 NEW YORK, March 26 (Reuters) – The new federal programs to aid the U.S. financial markets will likely not fend off the impending wave [...]

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What’s the latest fitness craze? The loan workout

by Moe Bedard

Brownstone and other local loan workout specialists have their hands full these days. With condo sales stalled and commercial building values eroded across the region, antsy lenders have been quick to put projects on watch lists at the first sign of trouble. Those signs could be anything from insufficient sales or leases to slashed asking prices that could make a project unprofitable.

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REAL ESTATE: HOMEOWNERS HAVE COMPANY

by Moe Bedard

Vacant land owners make up the bulk of commercial property defaults in Las Vegas, said Travis Nelson, assistant vice president of commercial sales at Nevada Title Co.

“There’s no income from the land. It’s hard to carry. You have a lot of higher-interest loans from private sources and hard money lenders,” Nelson said.

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Tough ‘09 Is Seen for Commercial Real Estate

by Moe Bedard

This year will be among the worst for the U.S. commercial real estate industry, as unemployment leads to a drop of as much as 30 percent in rents in some places and more office towers from Washington to Chicago and Los Angeles sit empty, according to several research reports from large commercial real estate service companies.

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Commercial Foreclosure Tsunami on the Way

by Moe Bedard

Looks like the commercial mortgage arena will have a rough year in 2008. It is only the next logical foreclosure wave to hit the US and this tsunami may be the mother of all waves that drowns what’s left of our economy.
Reuters – Commercial property loans originated in 2005 to 2007 that increasingly carried [...]

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