REPORT: REAL ESTATE COULD BURY BANKS

By
Real Estate Agent with Keller Williams Capital Partners Realty 277320

A Federal panel warns that continued weakness in commercial real estate portfolios may lead to  a rash of bank failures. Small community banks out side of Central Ohio are getting clobbered by commercial real estate losses, Central Ohio's community lenders appear to be weathering the storm. A Feb 11 report from the Congressional Oversight Panel studying the financial services and banking bailout regulations predicted that a wave of commercial real estate loan defaults could harm the stability of many small banks over the next few years A study done by Columbus Business first using the government's calculations fournd that Central Ohio's community banks have for the most part stayed clear of the gorging on commercial real estate seen in other parts of the country. The CoCongressional Oversight panel estimates that 1.4 trillion of commercial real estate loans would reach the end of their terms between 2010 and 2014 and will need to be repaid or refinanced. With the the recent decline in prices, the panel found that NEARLY HALF of those commercial real estate borrowers are under water on their loans and could have trouble finding new financing.

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Topic:
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commercial real estate in clintonville ohio

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Rainmaker
1,295,117
Sam Miller
Knox County Ohio
RE/MAX Stars Realty

Joe - I can visualize what you are describing regarding commercial property putting a strain on some of the smaller banks.   I am a huge fan of the smaller type hometown banks because of their personal service and their commitment to their communities.  

February 19, 2010 09:49 PM
Rainmaker
251,176
Robert Machado
CPM MPM - Property Manager and Property Management - Sacramento Area
HomePointe Property Management, CRMC

The banks need to modify loans once they figure out the owners numbers.  Taking the property in foreclosure should be a last resort.

February 21, 2010 05:43 PM
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Rainmaker
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Joe Jackson

Clintonville and Central Ohio Real Estate Expert
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