I think we’re going to see more of this in ’08!
This type of thing is indicative of a variety of issues surrounding real estate right now. What it will eventually come down to is when, where and who is going to eat the actual loss in value of real estate collateral associated with the plethora of financial instruments securing them. As a long time asset manager said to me that other day when discussing a variety of troubled real estate projects around the country…”you can’t fudge with the value of real estate like you can with other assets. At some point someone is going to have to own up to the loss.” So for the next several months to years I think we’re going to see attorneys racking up some significant billable hours in sorting through who owns what.
Happy New Year. Be safe!
Sphere: Related Content
