Monday, Feb 15, 2010
Long anticipated US commercial real estate problems start
Barron's: Required Skimming: Massive Commercial Real Estate Foreclosures Coming
Delinquencies rose a record 52 basis points to 5.4% in January on U.S.’s commercial property loans, according to Moody’s analysts.
This post has a link to the Congressional Oversight Panel produced report: “Commercial Real Estate Losses and the Risk to Financial Stability.” It starts "Over the next few years, a wave of commercial real estate loan failures could threaten
America‘s already-weakened financial system."
Posted by mountain goat @ 09:56 AM (495 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. rumble said...
Coinciding with the ARM fall.
2. mountain goat said...
Rumble, which ARM do you mean?
3. Ndg said...
Sorry to butt in but maybe the ARM's that US hicks took out - basically you could self-cert a mortgage and then repay each month like a pikey (do-as-you-likey) for somewhere between the first three years, rather than pay the REAL monthly repayment amount
e.g. Million dollar loan - pay back 1,000 dollars a month (non-pikey REAL monthly repayment amount is $3,500) then, after pikey-mania is finished, back to reality.
Reality = REAL repayments now required = $3, 500 pcm PLUS same % payment of total of accrued previous shortfall e.g. in this example 3 years = 36 months. Monthly pike = $2, 500. Total shortfall: 36 x 2,500 = $90,000. Monthly repayment now = foreclosure.
Grim. But then how did this happen? Oh yeah, easy borrowing.
4. Ndg said...
Or should that be irresponsible lending?
5. rumble said...
Yo, option
6. Ndg said...
Beautiful graph but it fails to elaborate the pikey effect. You'd need a much bigger spreadsheet if the pikey effect was 100% of all ARMs.