CRE Defaults
Commercial Real Estate: To Default or Not Default?
Source: nreionline.com
"Borrowers in today’s commercial real estate market face the daunting dilemma of deciding whether to default on their loans as a way to secure discounts in a struggling economy. According to “To Default or Not Default? That Is the Question,” the latest podcast by John B. Levy & Co., commercial real estate owners are considering loan default as a viable strategy for managing troubled debt at a time when access to money has become tight.
“What we’re seeing is that some borrowers are being advised to stop paying on their loans if they want to get a discount . . . to default,” says Andrew Little, principal at John B. Levy & Co. “And that is really bad advice. Borrowers who are experiencing problems with their debt need to take a more measured approach when working with lenders. The best way for property owners to do that is to work with someone who knows the ropes and who can help them secure a discount and avoid default.” "