by LJ Miehe on June 18, 2010
Editor’s Note: It is pretty startling that 25% of all commercial multi-family loans in Jacksonville are 60 days of more behind on their mortgage payments. According to a CB Ellis analyst, most of these properties were financed during the height of the housing bubble. Either money will need to be brought for refinancing or we will see more defaults and foreclosures to get market prices for commercial real estate to a reasonable valuation.
Business Journal (FL) - More than one-quarter of all multifamily loans in Jacksonville financed with commercial mortgage-backed securities are 60 days or more delinquent, according to the commercial real estate information provider Trepp LLC.
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by LJ Miehe on June 15, 2010
Editor’s Note: Mark Davis in this article made a good point that is the most important aspect in a recovery in the commercial loan market. He mentioned that is looks like underwriting standards have not declined in quality which means they are making sure the deals, valuation and borrowers all in line with having a good loan.
The article does mention that banks are extending terms on loans that have weak cash flow and high valuations so the commercial loan does not default and then require a write-down on their balance-sheet. They are hoping the market is in recovery and demand for space will rise and that will make these more optimistic loans make sense.
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