Comments on: RE Debt Management More Critical Than Before: Survey http://www.multihousingnews.com/news/re-debt-management-more-critical-than-before-survey/1004022134.html Fri, 10 Feb 2012 03:07:37 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Brett Daniels http://www.multihousingnews.com/news/re-debt-management-more-critical-than-before-survey/1004022134.html/comment-page-1#comment-1768 Brett Daniels Fri, 02 Jul 2010 05:44:06 +0000 http://www.multihousingnews.com/2010/07/01/re-debt-management-more-critical-than-before-survey/#comment-1768 Debt has not only become harder to handle but also harder to obtain. The unfortunate result is that the real estate markets become further depressed as LTVs decrease, DCRs increase and credit requirements become more strict, cutting off would-be buyers. Further, we have seen good borrower loans reach maturity, be in good standing, yet have no landing pad to the next loan resulting in foreclosure by the existing lender. Adding insult to injury, these same assets are often resold for less to clients of the lender at an equal to lower value and the lender providing the financing that they declined to extend to the original borrower in good standing with the termed out loan. Irrational lenders and debt markets that are "on one day, off the next" are not easily or very accurately predicted as a result. Debt has not only become harder to handle but also harder to obtain. The unfortunate result is that the real estate markets become further depressed as LTVs decrease, DCRs increase and credit requirements become more strict, cutting off would-be buyers. Further, we have seen good borrower loans reach maturity, be in good standing, yet have no landing pad to the next loan resulting in foreclosure by the existing lender. Adding insult to injury, these same assets are often resold for less to clients of the lender at an equal to lower value and the lender providing the financing that they declined to extend to the original borrower in good standing with the termed out loan.

Irrational lenders and debt markets that are “on one day, off the next” are not easily or very accurately predicted as a result.

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