Banner

Training Trivia

It is wise and acceptable to use a criminal background check to eliminate any candidates with a criminal record prior to getting to final interviews when hiring.
Powered by Grace Hill
 
 
Total votes: 34
Home Insider Blogs Dike Drummond MD CPC's Blog The "Strategic Default" Is walking away from your Mortgage now Socially Acceptable?
Enter your email address for weekly access to top multifamily blogs!

Apartment Blogs


Dec 21
2009

The "Strategic Default" Is walking away from your Mortgage now Socially Acceptable?

 Print

Posted by: Dike Drummond MD CPC on Dec 21, 2009 10:13

Tagged in: Untagged 

In this economy, where many individuals and businesses bought at the peak and are now under water on their loans, is it now Socially Acceptable to walk away from those loans? Are we to the point where a "strategic default" - as this has come to be known - is simply idle water cooler banter amongst investors.

Today Bloomberg announced that Morgan Stanley is doing just that for the second time in 2009. And the Wall Street Journal has had a series of articles on single family home owners and the epidemic of strategic defaults in home loans

More on Morgan Stanley ...

Back in the boom days Morgan Stanley made a series of purchases of commercial property from folks like Sam Zell that turned heads because everyone in the industry knew they had over paid. Now the stuff is hitting the fan and Morgan Stanley is simply handing the properties back to the bank and walking away - even though the loans are still current!

  • Last month they agreed to surrender 17 million square feet of office buildings to Barclays Capital after acquiring them for $6.5 billion in 2007 from Crescent Real Estate Equities.
  • Now they are announcing plans to relinquish five San Francisco office buildings to its lender two years after purchasing them from Blackstone Group LP near the top of the market.

From Bloomberg:  "San Francisco prime office rents fell 37 percent in the third quarter from a year earlier, the biggest decline since 2001, as companies cut jobs, Colliers International said. The vacancy rate rose to 14 percent, the highest since 2005. Almost 1.4 million square feet of space was returned to the market in the first nine months of the year. "

hype free commercial property training  |  follow me on Twitter for the latest


What Do You Think?


security code
Write the displayed characters


busy

Insider Blogs

Brandon Hollembeak The mobile payment revolution is beginning written by Brandon Hollembeak
  Jim Davoren of Apartments.com buying lunch from a food truck by swiping his credit card on an iPad. Chances are you've either heard of or seen mobile payments happening, as opposed to this time a year ago, when the conversations were just sta ...   (Read More)

Tashina Wortham 21 Ways to Show You’re Social [in pics] written by Tashina Wortham
Social Media is powerful—that’s pretty much recognized across the board. But a massive social following doesn’t just happen overnight (unless you're like Jeremy Lin or Madonna). Which is why it can be beneficial to promote your comm ...   (Read More)

Jeffrey Spanke "Rest in Peace, George Carlin." written by Jeffrey Spanke
Think of the resident that you hate. But I don’t hate anybody! I love what I do, and everyone is my favorite person in the world. I work in Moonbeam Twinkle Apartments, just under the mystical rainbow of Avalon, down the street from the chocola ...   (Read More)

Judy Bellack What does the Satisfacts Research survey on “All That Apply: ... written by Judy Bellack
NAA’s UNITS magazine published a Satisfacts Research survey in their April issue titled “All That Apply:  Residents’ Leading Marketing Sources.”  The web-based survey queried 34,000 apartment residents who had m ...   (Read More)

Brent Williams Fair Housing Does Have “Costs” And Should Be Part Of The Dis ... written by Brent Williams
I have a one year old daughter, so when I think about where I want to live, one of the major elements is simply whether there are other families with young children in the area.  So imagine me touring an apartment community and asking if there a ...   (Read More)

Read More Blog Posts