Options Exist for Buyers of Distressed Property

more+
less-

The flood of distressed commercial real estate transactions predicted to occur 2009 did not come to pass.

Why? First, although many loans are underwater (i.e. the borrower owes more than the property is worth), the borrower is able to make required loan payments because of historically low interest rates that currently exist.

Second, the precarious capital status of banks and other lenders has resulted in federal regulators encouraging banks not to pursue foreclosure or other enforcement action. Instead, may lenders "extend and pretend" and defer the problem into the future.

Whether the expected wave of distressed real estate transactions will occur in 2010 remains to be seen. However, we can exept that when distressed transactions do occur, they will be different from distressed transactions we have seen in prior commercial real estate recessions for a number of reasons.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:

more+
less-

Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×