Will This Lending Strategy Become the Norm?

TAMPA, FL—These days, many institutional lenders have no interest in hanging on to problem commercial loans. In fact, special asset departments at many banks are shrinking or, in some cases, even disappearing completely.  Instead of servicing problem loans, these financial institutions are focused on selling these loans to capital companies and other investors, typically in large portfolios.

So what does this trend mean for the commercial real estate market, and what should capital companies and investors consider to protect themselves as they buy these loans?  To get some answers, GlobeSt.com talked to real estate attorney Ron Cohn of the Arnstein & Lehr firm’s Tampa office. He specializes in helping lenders reduce their commercial real estate-related risk from a legal perspective, while working on a lender’s behalf when a commercial loan goes into default.