Lehman Brothers does not live to see his 159th birthday. Merrill Lynch will continue to exist only in the brand. The recent turmoil on Wall Street is just another proof that our banking system is dysfunctional terrible.
are traditional lenders like banks, Wall Street brokers and Hartford insurance companies are traditional commercial mortgages and then sold on the secondary market, where they are transformed into a consolidated MBS (mortgage backed securities) andsold to investors, large and small. The ship sailed, and now has fallen, there are (almost) there is no secondary market for mortgage bonds is not. Band in CMBS (Commercial Mortgage Backed Securities) is more than 90% over the previous year and the pipeline of new agreements is dry.
Undercapitalized banks are now holding strong because of sudden and prolonged depreciation of the real estate and property derivatives, which are. You can not afford to leave a penny of the door. You can not borrow againsttheir assets no longer mortgage or sell them, nobody wants! Without market ready or willing to buy new commercial mortgages, the banks will not write new commercial mortgages. In simple terms, banks are not lending, and loans will not be back anytime soon.
We are in the midst of a severe liquidity crisis that is developing rapidly, it is a society in crisis. Capital-fast-disappearing as it is grown as a real estate secured assets continue to fall in ratings. If this is up thereis not enough money for everyone. The Federal Reserve Bank is feeling the pinch, have committed more than $ 300B to support the faltering institutions, the Fed until the last half a trillion. And you may well get worse before they get better.
With traditional lending institutions and cables from the owner and developer of commercial photos should contact private lenders to finance so desperate. Many private lenders are hard PortfolioCreditor, "that lend money for its own account;. Mortgage banks are not dependent on the secondary market for their funding remain the markets, have bravely by continuing problems of constraint. Make one this private mortgage lenders make money and so many high points for their capital and protect themselves from loan low LTV (loan to value ratio).
Private investors are hedge funds, private equity groups, rangingIndividuals and private financial institutions to borrow money instead. They are able, very agile and responsive and can be good business in a few weeks to close. You can target very flexible in their lending standards, usually subscribe to credit the amount of equity in the property instead of the credit or the account debtor. The sad fact is that banks and brokers are not to complete transactions. Cash-rich private creditors have been the financial savior for many, manygood projects in the past 18 months.
The banking system has failed and it will take months to get back on track. Meanwhile, commercial real estate investors have borrowed capital from the private sector will have to depend on them for long.
Private Commercial Mortgage Loans ? Banks are not lending, Hard Money to the rescue!
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