In many regards that already have. Just try to get a deal financed today. It seems no one… at least not the regulated lenders are lending at all.

As for how they are valuing their portfolios… only time will tell. I am predicting that on the residential side they will start to adjust their residential portfolios to reflect reality after the end of year reporting for 2009.

I don’t think the pain level is high enough on the commercial side and as long as the lenders can continue in their fantasy world they are going to.

Iman… as Josh mentioned I am arguing that the coming commercial fall is a big deal.

While there are some who don’t share that view… as referred to in the article… click on the word DIALOG in the middle of the third paragraph to see some of the views of the experts.

For Dave, in the same article here is the reference regarding banks and their current valuation methods…

” Hessam Nadji directs research for Marcus and Millichap Real Estate Investment Services in California. He says in the meantime, banks are holding the loans on their books at full value and employing a tactic you might call “delay and pray.”

HESSAM NADJI: The bottom line is lenders are, as a result, extending loans and trying to avoid short-term additional losses until they get stronger and have the wherewithal to start to process some of the undervalued real estate.”

I hope this helps to add some clarity to the discussion?

(BTW – You may want to jump on Gravatar.com so you can have your pic posted with your comments here and on any other wordpress blog)

“it seems that everyone is now paying attention to the coming challenges with the commercial mortgage market. And who can blame anyone for thinking that the commercial market is on the edge, and will likely go right over the side in the coming 2 – 3 years.”
.-= Iman Yusef-Yahya´s last blog ..REO Properties: 7 Must-Know Tips and How to Profit From Them =-.