Legal Issues Among Challenges
Date 6/17/2010
Commercial real estate faces challenges never seen before. Sluggish demand for most property types, a growing number of distressed assets and the shortage of capital are big concerns. Add one more: Mounting legal issues driven by changes in the mortgage and construction loan marketplace and the growing number of bankruptcies and foreclosures.
Real estate today is widely controlled by lending institutions. If banks aren’t lending, investors aren’t buying. Given the number of properties seized through foreclosure and loan defaults, banks now control a lot of real estate. From the perspective of the owner or developer whose property is in danger of foreclosure, lenders have, in part, caused their troubles. “One big legal issue right now is lender liability,” said Dewey Struble, CCIM, Senior Advisor at Sperry Van Ness in Reno, NV. “We’re seeing investors who have…
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