Commercial Property Foreclosure Crisis Coming
The TARP Congressional Oversight Panel Chair, Elizabeth Warren, is sounding the alarm about an impending tsunami of commercial real estate foreclosures — and the potential for 1,000s of more small banks failing. In the clip below, PBS sheds light on the beginnings of the next real estate crisis.
Here’s the basic premise… “Between 2010 and 2014, about $1.4 trillion in commercial real estate loans will reach the end of their terms. Nearly half at present are “underwater” – that is, the borrower owes more than the underlying property is currently worth. Commercial property values have fallen more than 40 percent since the beginning of 2007.”
See the video below, which came to our attention from The Daily Bell’s post on Elizabeth Warren discussing the next real estate crisis.