Zombie apocalypse stage 1: Zombie Buildings
source: http://www.huffingtonpost.com/2009/11/20/zombie-buildings-are-they_n_365400.html
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- Pericles_Lewnes
- added this
While the overall U.S. financial system is showing signs of stability, a rapidly rising tide of troubled loans for commercial real estate threatens the survival of hundreds of the nation's small and medium-sized banks.
Financial reports this month from federal regulators and industry analysts detail a new cycle of uncertainty that they fear could cripple the economic recovery. Billions of dollars in commercial debt will have to be paid back or refinanced at a time when property values have plummeted. About $500 billion will come due in 2010 alone and an equal amount every year through at least 2012, according to the Federal Reserve.
Many banks that cater to regional and community developments were largely unscathed by the residential mortgage meltdown. But now they are facing huge numbers of possible defaults by builders who erected thousands of office towers, condominiums and shopping centers with the easy credit available five years ago. With few tenants, those developments are turning into what industry insiders call zombie buildings...
More and video at Link
http://www.huffingtonpost.com/2009/11/20/zombie-buildings-are-they_n_365400.html
Financial reports this month from federal regulators and industry analysts detail a new cycle of uncertainty that they fear could cripple the economic recovery. Billions of dollars in commercial debt will have to be paid back or refinanced at a time when property values have plummeted. About $500 billion will come due in 2010 alone and an equal amount every year through at least 2012, according to the Federal Reserve.
Many banks that cater to regional and community developments were largely unscathed by the residential mortgage meltdown. But now they are facing huge numbers of possible defaults by builders who erected thousands of office towers, condominiums and shopping centers with the easy credit available five years ago. With few tenants, those developments are turning into what industry insiders call zombie buildings...
More and video at Link
http://www.huffingtonpost.com/2009/11/20/zombie-buildings-are-they_n_365400.html
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- groups:
- Community, Current Tonight
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- tags:
- News and Politics, Economy, Real Estate, Banking, 1 more
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Chique
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This has been getting worse at a steady pace for sometime now. More and more vacancies with small businesses unable to remain open, and the appraised value now vs. appraised value when the mortgage was taken out - banks are seeing they are upside down on many commercial loans, especially in states hardest hit during this recession.
- 2 years ago
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Chique
