Commercial Mortgage Rates have been rising with the drop in commercial property values now at an average of 43.7% throughout the U.S. and rising CAP rates due to high unemployment and other factors. Obtaining the best Commercial Mortgage Rates outside of government financing under reasonable terms has become particularly difficult since the CMBS markets all but shut down. Commercial Mortgage Conduit Lenders have left the playing field waiting for new regulations before stepping back into the game.
The Federal Government recently issued a Policy Statement regarding the restructuring of commercial mortgage debt. While this is not the same type of program or edict as on the residential side it has provided both motivation and guidance for all banks as to how, when and under what circumstances commercial mortgage loans should be modified. This is mainly due to the fact that Commercial Mortgage Rates have not settled and many loans are maturing in the next 12 months.
The governments focus was not so much on loan amounts or property types but loan status and cash flow predictability. As we have noted both in our training and previous emails there is a trillion dollars worth of commercial mortgage loans coming due this year. Six percent are delinquent at present. As the year progresses commercial mortgage rates along with the delinquency number will increase.
These Federal Guidelines are designed to target the problem now and resolve as many of those loans as soon as possible before the other 94% reach maturity and inevitably default. In the Commercial Mod Program we provide the training and support to help you get the cases packaged properly.
Between the IRS Rule Change (Proc 2009-45), TALF Extension to October of this year and this new policy statement the stage is completely set for restructuring maturing, delinquent and even commercial mortgage loans in the foreclosure process over the next 24 months.
CommercialMortgageInfo.net provides free search for new sources of funds and the lowest Commercial Mortgage Rates as well as access to a network of industry professionals who can and will work with both borrowers and brokers to help restructure / modify their maturing / delinquent commercial mortgage loans.
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