Commercial Real Estate Defaults and SBA Business Loan Defaults Continue

By Manny Caballero, Real Estate Commercial Group
Commercial real estate loans and commercial real estate constructions loans are continuing to falter faster than the public knows about.

If we look at the commercial real estate prices slipping by more than 45% and “CMBS defaults have tripled compared to last year” according to Manny Caballero, Real Estate Commercial Group, we wonder if most companies will ever recover their values.

So far as of April, 2010 the number of banks that have failed is now 64 compared to the 1930’s, where the yearly average … Continue Reading

The commercial real estate could collapse at any time.  Why?  “A significant wave of commercial mortgage defaults will trigger so much economic damage that it could touch the lives of nearly every American,” says the Congressional Oversight Panel

The bank failures so far in 2010 is 50.  There are no easy solutions for the other 2,100 small banks that should be planing to help prevent this commercial real estate  meltdown.  I haven’t heard any suggestions from our US government also, have you?  Banks today are using dated solutions to address and … Continue Reading

This is the story that the media does not understand and cannot tell.  Education and History from our new friend John Doe.

commercial-real-estate-defaults

This is a stream of consciousness for you to pick through.  Sorry but this is the best I can do for you at the moment.

Before 2010, there were issues that go back to the Clinton administration when there was pressure on Freddy and Fannie to increase lending to “weaker credit scores”.  Enter the sub-prime market.   Then the CEO of Freddy Mac spoke in front of congress … Continue Reading

Commercial Bank Closures

by Steve Hueter, Real Estate Commercial Group

2010 begin with three more banks closed by the FDIC.  The cost it your keeping score, about 56 million a share-loss agreement.

If you think we are out of the woods and safe….than think again.   Yeah I know what your saying “….but the stock market is above 10k again and the government is spending trillions to stimulate the economy and unemployment has slowed”.  This all may be true but there is a factor that could put the … Continue Reading

By Manny Caballero, Real Estate Commercial Group

Small Business Owner Alert! Your commercial bank could be putting you out of business unless you are prepared for the worst case scenario; your note is due and payable now! What are you going to do if this happen to you?

Ulysses Sanchez, senior vice president of Real Estate Commercial Group, said “it’s clear that commercial lenders may have been holding off on foreclosing and might be working with business owners with a commercial loan modification but lately we are seeing business owners who are current … Continue Reading

Happy New Year,  continuation of bank failures starting with Horizon Bank.

If you are keeping the tally of cost for this latest bank failure, the cost is about another $ 539 million for the FDIC’s insurance fund.

As small banks are facing the pressure from the deterioration loans and the pressure from US regulators to get bad loans off their portfolio even if they are performing is strangling small businesses.   Most loans for these small banks are tied to commercial real estate projects that have collapsed or are in decline or the borrower’s … Continue Reading

In the US the number of banks with risky levels of bad loans continues to climb rapidly.  According to MSNBC and the Investigative Reporting Workshop we have have about 369 banks with high “troubled asset rations” by then end of September, which is up from 297 in June.

States like Arizona, Florida, Oregon, Georgia and Utah are reported to have the highest ratios.

For 2010 the Consumer Mortgage Audit Center is projecting another mortgage crisis for the adjustable rate mortgages (ARM) of which 53% are expected to recast.  Housing bills … Continue Reading

Last Friday three more banks failed that’s brings the year’s total to 133 bank failures and growing.  If anyone is keeping a tabs on the cost to the FDIC insurance fund this time will be about $ 252.1 million.

The three banks that failed were the Republic Federal Bank in Miami, Florida, which is ironic because the bank paid back its TARP loan.  Next to go was the Valley Capital Bank of Mesa, Arizona, and then there was the 122 year old SolutionsBank of Overland Park, Kansas.

More bad news or … Continue Reading

Since Friday, 6 more bank failures and could provide a cost to the FDIC more than $ 2.6 billion.  So that’s 130 bank failures to date.

The biggest shut down was Cleveland-based saving and loan AmTrust.  It was the fourth largest bank or thrift to fail this year.

Other banks will get to gain deposits by agreeing to take on these failed banks assets.

Few years before the mid-state lenders tackled commercial mortgages in the way as they used to do it with the residential loans. They did bet with property owners so that the occupancy and rental rates may grow continuously. It … Continue Reading

The commercial real estate market is on its last legs,  unless drastic actions are taken, the coming results will be catastrophic. With excessive amount of debt holding on the the commercial real estate properties is currently the big issue.  With the secondary market almost gone, over a trillion dollars will be due in the coming years.
In a series of court decisions that will have short term and long term repercussions in the credit markets is making an already cautious lending community absolutely paranoid, and restricting credit even if available.  One court decision in In Syracuse, N.Y prevented Citigroup from foreclosing … Continue Reading