Everyone thinks that the residential real estate market is in the dumps and the commercial real estate market is in recovery mode. There have been commercial foreclosures over the last couple of years but most of those commercial mortgage sales came from a few banks and the Federal Deposit Insurance Corporation. Now more troubled loans are being worked by other lenders and servicers. Next year around $400 billion of commercial real estate loans mature. That is up from $375 billion this year and $250 billion in 2010 according to Deutsche Bank.
Each month billions of dollars of commercial real estate properties are falling into default. The delinquency rate for commercial mortgage-backed securities has remained high for much of this year and was 9.8% in October, one of the highest percentages ever. Many people think that we're going to see a lot more loans going into default over the next few years.
This is problematic for the property owners that are current on their mortgages as the investors buying distressed commercial loans and foreclosed properties are able to rent them at much lower rates and service the debt. That puts the owners that are still holding on to their old debt financing at a disadvantage. The pressure on rents has the potential of sending commercial property owners that are current into default. Commercial bond investors are suffering an average loan loss of 38% on property sold this year according to Deutsche Bank.
For more information on commercial property values and ammunition for property tax appeals please visit us at www.fair-assessments.com and for assistance with your property tax appeal, please contact us.
Each month billions of dollars of commercial real estate properties are falling into default. The delinquency rate for commercial mortgage-backed securities has remained high for much of this year and was 9.8% in October, one of the highest percentages ever. Many people think that we're going to see a lot more loans going into default over the next few years.
This is problematic for the property owners that are current on their mortgages as the investors buying distressed commercial loans and foreclosed properties are able to rent them at much lower rates and service the debt. That puts the owners that are still holding on to their old debt financing at a disadvantage. The pressure on rents has the potential of sending commercial property owners that are current into default. Commercial bond investors are suffering an average loan loss of 38% on property sold this year according to Deutsche Bank.
For more information on commercial property values and ammunition for property tax appeals please visit us at www.fair-assessments.com and for assistance with your property tax appeal, please contact us.
