Malls are next to face foreclosure, page 1
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Topic started on 1-12-2008 @ 05:44 PM by questioningall

Malls are next to face foreclosure


www.heraldtribune.com
Even as the holiday shopping season begins in full swing, the same events poisoning the housing market are now at work on commercial properties, and the bad news is trickling in. Malls from Michigan to Georgia are entering foreclosure.

Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default on their mortgages.

That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings Ltd., which evaluates companies' credit.

"We're probably in the first inning of the commercial mortgage problem," said Scott Tross, a real estate lawyer with Herrick Feinstein in New Jersey.

That is bad news for more than just property owners. When businesses go dark, employees lose jobs. Towns lose tax revenue. School budgets and social services feel the pinch.

(visit the link for the full news article)


reply posted on 1-12-2008 @ 07:33 PM by Daedalu
Here in SW Missouri we just had on the news about a finance Company that was taking payment from home owners who where paying there Mortgage where getting put out of there homes, to find out the company that they where paying was not paying the investment banks . Now the home owners where told that it was there fault! They have to be out of there minds. No one of those people could know that there finance company was not paying it's bills.

This is a mess and it is only going to get worse, and that just shows me that good people that are working hard and keeping up with there bills may have there homes taken from them because of another company down the line of hidden money lines did not pay there bills.
And what is at fault is the courts that go along with this, let the big banks get there money at any cost and leave people who did nothing out.

I can not think of how people are going to react when this gets bigger. But it will not be good.

One can only wonder what is going to happen also when the Malls start to go under, we say well we will just go to the Mom and Pop stores . As it is now there are not any of them left. Or the ones that are still here cannot supply the goods that we use every day.

The chain reaction from this is going to set us back for years, and it will take that long again to recover. One thing the News does not say and seems to not be able to talk about is the long term effect. And how we will replace what is being lost.
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