The foreign press writes about the beginning of the first wave of “housing” crisis and the realities of today in “real estate” 2010-2011 year. Author of the article Foreclosure lawyer wrote that the first wave of the crisis started because of the “housing” market U.S. real estate. When the cost of apartments began to fall sharply on accelerating the background of the borrower’s failure to pay the bank on its obligations. The second wave of crisis may start because of “commercial property”. Since the end of boom, “real estate” market “real estate” also appeared in the center of the crisis, heated concessional loans and players of investment funds, the cost of commercial real estate has increased several times. Thousands of commercial real estate transactions were bought at the peak of the crisis, the calculation was made with borrowed funds from the bank. During this time, revenues from the profit was sufficient to cover debt and operating costs. But now, companies are tightening their belts, unemployment rises, consumers will not spend money on goods, services and travel. Profit in the market “real estate” for these reasons fall. This scenario raises owners in an extremely difficult position, since the cost of credit rising, and rental income is falling. Most owners of commercial real estate, taken in 2008, a loan repayment period two to three years.
“Commercial property “after the first wave of the crisis considerably lost its initial income. Weakened financial condition of the property owner affected by the current situation. If you analyze the history of the credit market, over the past 60 years, many owners of commercial property, considering – it’s an economic ‘Armageddon’. With the tightening of credit and loans combined poor financial condition of the borrower, banks are calling for repayment of borrowed funds. When the bank calls the borrower to return in time, it turns out that money to return to the creditor no. A receipt of new funding is not a viable option for the same reason. Current creditor can not re credited. If nothing is done, many owners may face personal bankruptcy. Many investors’ commercial real estate “is currently looking for ways to non-payment of loan which implies that the natural destruction of the bank gave a loan. There is an option that the owner of commercial real estate has not paid on the loan. Option is to restructure the debt at the expense of Chapter 11 reorganization in bankruptcy. This is the most effective tool, subject to certain concepts. If Chapter 11 is not an option for the owner, then the judicial recovery becomes the next option for the owner “Real estate”. A property owner may waive the requirements of the bank. These requirements are similar to those used for “housing” punishment. Just as the owner “real estate” “Commercial owner starts to realize that there are options and take legal action to protect their property rights and investments. Summed up becoming obvious why shaken banking system in the first round of crisis. And since the first wave of the crisis on “real estate” was held, taking over the ruin of a well-known banks. It can be assumed that because of the time factor, the calculation of the loan 2 3goda and loopholes in U.S. legislation on the horizon second round of the crisis “real estate”. Material prepared by: Andrei Mamontov.