The move for lenders to find ways to avoid action on troubled CRE loans has been called "extend and pretend," though "delay and pray" might be even more apt.

While an institution can avoid significant and final decisions, it can put off the day when it takes a hit to its balance sheet, hoping that find another solution in the meantime. Who wants to take possession of a property along with the responsibility of disposing of it?

But how much of this activity has been going on and how long could it be sustained? CRED iQ has analyzed loan modifications during this period of significantly elevated interest rates.

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