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A number of my friends have assignments to advise lenders on what they have on their book and what to do to fix the problem loans. They are finding an amazing lack of knowledge at the lenders, and bad files even on large loans. The special servicers are overwhelmed and have staffed up in some cases with young people who are not really capable of understanding the real estate. In addition, special servicers are under no pressure to take action. Their fees stop if they foreclose and sell, and the bondholders are still hoping that time will heal all wounds. Because they are overwhelmed, it takes them months to get to try to understand any one asset, while the borrower is in a hurry to fix his problem or give back the keys and get out from under.

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