While some of the residential foreclosure numbers look to be improving, there is a whole other segment out there that seems to be on a downward slide.
More and more commercial properties seem to be going to foreclosure. With the drop in commercial rents, many of these properties are unable to meet the bank required DCR to have the chance to refinance out of any problems.
In addition, with lower rents and higher vacancies, the values of these commercial properties has fallen, often times a great deal. This is a segment of the real estate industry to keep an eye on. As hard money lenders, we continue to get loan requests for commercial properties that cannot qualify for bank financing. This enables us to keep a good pulse on the local commercial markets in the California area.
Image source: http://www.rrstar.com/news/x15…
A shopping mall, retail center and a former drug/hardware store were among the properties that had foreclosure proceedings started against them locally in July.