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.

Posted by

________________________________________________________________________________________________________

                                     

THE JACKSON TEAM  614.888.1000   614.431.1220

VISIT US AT WWW.THEJACKSONTEAM.NET

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Ohio Franklin County Columbus Clintonville
Groups:
Active Rain Newbies
CRS Realtors in ActiveRain
Investors
Posts to Localism
Realtors®
Tags:
commercial real estate
commercial real estate in clintonville ohio

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the scissors to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,367,255
Sam Miller
RE/MAX Stars Realty - Howard, OH
Knox County Ohio

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.  

Feb 19, 2010 09:49 PM #1
Rainmaker
251,689
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management - Sacramento Area

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

Feb 21, 2010 05:43 PM #2
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the robot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
1,188,846

Joe Jackson

Clintonville and Central Ohio Real Estate Expert
Ask me a question about Real Estate!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pencil to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information