Rents for industrial warehouses have dropped as a result of companies reducing the scope of their operations in response to the economic slow down. This may also be due to current warehouse tenants asking for reductions in their rent. The final effect is that the warehouse owner is unable to come up with the usual [...]

Commercial Mortgage backed securities (CMBS) Loans are unique in that there are several legal restrictions that may prevent a Workout because the investments of the CMBS shareholders need to be protected. However, this may still be possible through the special servicer although the process is complex. The CMBS are a collection of Mortgage Loans that [...]

The Federal Financial Institutions Examination Council has issued a suggestion that Commercial Real Estate lenders, such as Banks, should collaborate with the Borrowers to find ways to modify their Loans to prevent foreclosure. The regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, are trying to encourage Banks by declaring that they [...]

Commercial Mortgage Modification is not usually talked about in the news because of the current focus on home loans. Thus, the problems of owners of Commercial Properties, such as hotels, apartment buildings, warehouses and office buildings, are often neglected. However, experts predict that there is an upcoming wave of defaults on Commercial Mortgage loans that [...]

Owners of income-producing real estate properties, such as strip malls, shopping centers, office buildings, restaurants, apartments, hotels and multi-tenant buildings, are also feeling the effects of the financial crisis and many Commercial real estate Loans that are due in 2010 are in danger of default. Banks and lenders may be willing to change the terms [...]

The Federal Deposit Insurance Corp. (FDIC) had shut down nine failed lenders under the multi-state holding company, FBOP Corp. Fortunately for the lenders’ customers, the FDIC will cover the bank deposits up to $250,000. It is believed that the FBOP lenders have been hurt by their focus on Commercial Real Estate Mortgages. While the media [...]

Banks and Banks holding Commercial Property Mortgages for income-producing properties are expected to have severe problems by 2010 when many of these Mortgages reach the end of their terms. Many of these properties were purchased using Commercial mortgage backed securities (CMBS) Mortgages that had very aggressive terms with as high as 90 percent financing with [...]

In the current financial crisis, Mortgages that are in trouble are not only residential homes but they also include Commercial Properties. A Commercial Mortgage is quite similar to a home Mortgage but the Property Owner is usually a Company entity instead of a single person. Thus, the evaluation of the creditworthiness of the Company is [...]

Home Mortgage Modifications and foreclosures have dominated the news and so far, Commercial Real Estate Mortgage problems have been rare. However, experts predict that this may soon change because many of the Apartment buildings have been funded by Commercial Mortgage backed securities Loans. These kinds of Mortgages had very difficult terms with the Borrowers being [...]

Lenders and banks have been silent regarding the impending crisis in Commercial Real Estate Mortgages although analysts have been predicting that this is another bubble that is scheduled to burst in 2010. Bank regulators and financial experts are now urging both banks and borrowers to sit down and workout a solution before these properties go [...]