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"Mortgage Meltdown"...Sound Familiar? This Time Commercial

By
Real Estate Agent with My Idaho Place Real Estate, Inc.

In their article, "Commercial Real Estate Lurks as next Potential Mortgage Crisis," LingLing Wei and Peter Grant of Wall Street Journal online outline how this is happening.  "CBMS" is an acronym for Commercial Backed Mortgage Securities, and a very telling line in the article, "...many property developers and investors complain there is no way to identify the investors that hold their debt and that it is difficult to negotiate with CMBS servicers."  --Wow, "no way to identify" investors?  "Difficult to negotiate...?"  No...really?

You know how economic experts will tell you that if "they" are talking about trends such as the market finally reaching the bottom, they can do so because the market is coming off of the bottom and you can look back and definitively see that is true?  Well, "they" are just talking about this "lurking" as the "next potential mortgage crisis..."  --Hmm.

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Commercial always lags  behind the residential.  What's that called?????  I think it's "sign of the times." 

Aug 31, 2009 02:06 AM
Bev Boeck
My Idaho Place Real Estate, Inc. - Eagle, ID

Hi Larry,
like your photo of Otto and his friend; thanks for commenting. 
Yep, "sign of the times,"--Like, NEON sign, huh?  ;-)

Aug 31, 2009 02:15 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Bev - It's definitely a problem; I've posted about it several times. Some experts predict that commercial values will drop by as much as 50% which creates huge problems for owners trying to refinance.  And this is a problem that is contributing to the failure of many of the smaller, regional banks.  It's just one more example of why the economy is not doing nearly as well as some would have us think.

Aug 31, 2009 02:50 AM
Bev Boeck
My Idaho Place Real Estate, Inc. - Eagle, ID

Hi John; liked your "Quicksand" post so well, I just reblogged it!  Perfect metaphor...

Aug 31, 2009 02:59 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Thanks, Bev, and thanks for visiting my blog.

Aug 31, 2009 03:07 AM