Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Litigation Landlord Tenant Law Litigation

Commercial Real Estate Lenders Face Remedy or Relief Decision In COVID-19

Lenders in default scenarios face a choice of whether to exercise remedies and take over their collateral, or offer relief measures to their borrowers, either in the form of short-term forbearance or a permanent loan modification.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

As the COVID-19 pandemic continues to place enormous stress on the commercial real estate industry — with hotels and shopping centers shuttered or experiencing depressed occupancy, urban apartments losing tenants and the lack of federal stimulus — an increasing number of commercial real estate loans are facing current or impending borrower defaults. The second quarter of 2020 reportedly saw a 65% increase in the overall delinquency rate for commercial real estate loans over the prior quarter, and upwards of $26 billion in commercial real estate loans have been downgraded to a rating of CCC or lower by a credit agency as of the beginning of September.

To continue reading,
become a free ALM digital reader

Benefits include:

*May exclude premium content

Read These Next