Commercial real estate investors we should be aware that since the last big “commercial real estate buying” period for commercial real estate properties was around 2008, so many of the existing 5 year fixed commercial loans used to finance those commercial real estate investments may be ballooning or becoming all due and payable in 2013.
Over 4,700 CMBS (Commercial Mortgage Backed Securities) with loan balances near $55 billion may need to be refinanced in 2013. A high percentage of these ballooning commercial mortgages may not have sufficient income to service the existing mortgage debt.
According to Bloomberg Financial News, there may be an additional 6,300+ non-CMBS commercial mortgage loans with balances of almost $79 billion, which may becoming all due and payable in 2013.
Things have most certainly changed since 2008 and in many cases, the existing mortgage debt on a commercial property, may currently exceed the market value in 2013 based upon the income and expenses for the commercial property. Some mortgage lenders or servicing companies may accept partial payoffs similar to a residential “Short Sale”.
As a result in 2013, Commercial “Short Sales” may increase.
This information is for informational purpose and not intended to be investment advice, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared