Strategic Defaults

Posted June 3, 2010

In Columbus, Commercial, Lending, Los Angeles

This is a huge topic right now and full of risk.

Strategy of Last Resort: To Default or Not To Default? – CoStar Group

I have an owner right now who is exploring those options. The negotiator recommended by his CPA made the recommendation that he stop paying on his loan for a few months to get the lender’s attention. Now what kind of attention he will get from the servicer remains to be seen, but I’m not sure it’s going to be good.

True, the lender brings some of this on themselves as they haven’t been the least bit flexible on anything. They wouldn’t even move the due date from the 1^st of the month to a date a few days later. On multiunit residential this creates an immediate cash flow problem due to the timeliness of rent collections.

Commercial Real Estate

Commercial realtor

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