Relief for Commercial Sector Seems Possible
With hundreds of billions of dollars in maturing commercial property loans looming on the horizon, the Treasury Department may issue rules that will make it easier for developers, investors, and their loan servicers to restructure debt.
The Treasury is considering guidance that would allow servicers to start a dialogue about ways to avoid defaults and foreclosures sooner, possibly at least two years before a loan’s maturity date. Such guidance would allow loan-modification discussions to take place without triggering tax consequences.
Of concern is $154.5 billion of commercial mortgage-backed securities loans coming due between now and 2012, about 66 percent of which will likely not qualify for refinancing.
Source: Wall Street Journal, Lingling Wei and Kris Hudson (06/10/09)
This is very important that treasury take immediate steps to help real estate owners by asking special servicers to do loan modifications. These loan servicers are not doing that…instead they are deceiving and trying to foreclose on the properties.