Flutterby™! : strategic defaults

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strategic defaults

2010-08-25 19:18:27.239226+02 by Dan Lyke 0 comments

WSJ: Large commercial property owners are choosing to default, mostly to pressure banks into loan restructuring.

Owners of commercial property have an easier time walking away than homeowners because commercial mortgages are typically nonrecourse. That means the biggest penalty for walking away is the forfeiture of assets and cash flow they may generate.

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