2011 Forecast – Foreclosure Wave

Hundreds of billions of dollars in commercial mortgages and construction loans will mature this year. Extend-and-pretend practices of banks and foreclosure reluctance by special servicers will decrease, based on recognition that increased absorption and rental growth will take more time, and an owner will not invest capital needed to preserve the asset knowing it may eventually be lost. Many banks have had sufficient time to build up cash reserves so they can now write down asset carrying ... Read more