There could be some good news on the horizon for commercial property owners hanging on desperately to “extend and pretend” loans that they fear could be called in at any minute: Fitch Ratings is predicting that nearly 800 fewer CMBS loans will come due in 2012, meaning that the loans that are coming due will be easier to refinance. These loans “form the older vintages” are easier to refinance, says Fitch ratings senior director Adam Fox, because they “benefit from 10 years of amortization and stable performance.” Fox added that loans originated in 2007 are “more challenging.”
This year, $22.5 billion CMBS loans matured, while next year only about $17.3 billion are projected to come due. Fitch also reported a continued “willingness among commercial servicers to work with borrowers when property performance is not an issue.”
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