Real Capital Analytics (RCA) reported that commercial loan modifications may be increasing. RCA noted that lenders resolved $14.7 billion in distressed situations at the end of February 2010. However, this is still a small portion of the $157 billion dollars of troubled commercial debt on the books today, they say.
Deutsche Bank recently reported that banks have exposure to about $550 billion in construction loans, $1.1 trillion in commercial real estate loans, and about $150 billion in multifamily loans. (Commercial Investment Real Estate. “Capital Markets Conundrum”, by Steve Bram. Nov/Dec 2009).
The full extent of our real estate slump, economic troubles and constrained credit markets going forward over the next year is unknown. It seems that everyone is frustrated and trying to survive. Commercial real estate owners, faced with fallen values and a tough economy, are fighting to make it through the cycle. Lenders, faced with failing loans and worried about their own capitalization and survival, have pulled in from new lending or refinancing. Commercial loan modifications may be one of the prudent ways to resolve the situation for both lender and borrower.
In fact, as lenders deal with their troubled assets, the focus shifts to dealing with problem loans and commercial loan modifications. Many banks have set aside large capital reserves they are not touching in preparation for losses, but the question is whether the reserves will be enough to keep them alive. A more friendly environment for commercial loan modifications may be opening up in response to the situation.
Do you need a commercial loan modification?
Is your property troubled, or does foreclosure seem inevitable? Contact us immediately to discuss a commercial loan modification and potential solutions. We believe that prudent workouts can favor both the lender and borrower, and we work to bridge the gap.
Your partners in success for commercial loan modifications
Commercial Affiliates is a team of experienced commercial loan modification experts. Our members have successfully restructured over $10 billion in distressed real estate debt on all property types. We have extensive experience in loan workouts, in acquisition and disposition of properties, and in the analysis of a broad range of property types across the U.S. We have the only platform in the industry, CPAR (Commercial Property Analytics Report), which benefits you in the commercial loan modification process. Our experienced team can negotiate the best commercial loan modification for you.
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E-mail us at info@commercialaffiliate.com
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Telephone Miles McCabe at 1-503-731-6000