The Mortgage Crisis May Have a Second Act?

Posted by admin on May 1, 2009 under Good Info - Read It, by Tim Davis | Read the First Comment

by Tim Davis

As we all know, unlike residential mortgages, commercial paper is ammortized over a longer period of 20-30 years, but they have terms or balloon payment dates. Most popular commercial loans are for 5 year terms. If you calculate backwards and figure when the commercial market was at its peak, from mid-2006 to mid-2007, those notes will be coming due in 2010-2011.

It is foreseeable that the financing in place on that commercial property will be difficult to renew, Read more of this article »