Banks Tearing Off Band-Aid on Bad Office Loans

Mark Edelstein spoke to The Real Deal about how lenders are dealing with distressed property debt.

"I've never heard of this happening before," Mark said. "Banks are actually coming to us saying, 'We'd rather take the hit today and lose maybe $10 million than give the borrower two years when we might take a $40 million loss.'"

Mark added that "the lending world is deciding to some degree it's in their best interest, now, to cut and run," and noted that he's seen banks initiate the push for deeds-in-lieu-of-foreclosure and, more surprisingly, short sales, a solution last popular during the 1990s real estate recession.

Read the full article (subscription may be required).