- Joined
- Jun 21, 2007
- Messages
- 4,653
- Reaction score
- 643
- Location
- Suburbia
- Gender
- Male
- Political Leaning
- Independent
How many local banks are involved with CMBS? How many banks will fail before 2011? Have 290 Banks already failed in the last 18 Months? What are the possible solutions open to Governments, if too many more banks start to fail? How many commercial property managers are upside down, under Water? Are there any small banks with commercial mortgages that have an answer for Commercial Building owners that stop making payments, and mail the bank the keys to the building? Jingle Mail?
Are there any small banks that could take steps to avoid jingle mail, but don't see the writing on the wall?
"Owners of commercial property have an easier time walking away than homeowners because commercial mortgages are typically nonrecourse. That means the biggest penalty for walking away is the forfeiture of assets and cash flow they may generate.
Whether landlords walk away from properties often depends on the lender. In recent years, most projects were financed by the use of commercial-mortgage-backed securities, or CMBS, which are effectively bundles of mortgages sold as bonds to thousands of investors. Restructuring debt with scores of bondholders is more difficult than with banks."
Commercial Property Owners Choose to Default - WSJ.com
Are there any small banks that could take steps to avoid jingle mail, but don't see the writing on the wall?
"Owners of commercial property have an easier time walking away than homeowners because commercial mortgages are typically nonrecourse. That means the biggest penalty for walking away is the forfeiture of assets and cash flow they may generate.
Whether landlords walk away from properties often depends on the lender. In recent years, most projects were financed by the use of commercial-mortgage-backed securities, or CMBS, which are effectively bundles of mortgages sold as bonds to thousands of investors. Restructuring debt with scores of bondholders is more difficult than with banks."
Commercial Property Owners Choose to Default - WSJ.com
Last edited: