It just keeps getting worse!!

[Rich Weese]

I should not buy sunday paper! It just re-inforces my gut feeling, and I have a sizeable gut that feels!!
Here is the newest problem with lenders today. I'm in FL and front page article was discussing the next bad situation. We have developers that took the chance to build malls, strip centers etc .
Developers went out bought land, obtained const financing, as long as they had the "take out" permanent financing lined up. That was when rates were considerably higher and many lenders and borrowers were getting LIBOR loans lined up. Article discusses a real live situation when a bank committede to a 2.1 % loan abover the going Libor loan at time of converting const loan to the permanent. Unfortunately, for the lender, that LIBOR is currently .03%. They would have to make the loan at 2.4%!
Lender says they can't make money on that, no other lender wants to make a commercial loan on strip center at decent rate, and const lender wants to be paid off in full. I'm afraid there is no easy answer to this coming mess either. If rates are raised, the loan won't be serviceable on high vacancy commercial.
Anyone see a way out of this mess? Its' coming to a city near you soon! Rich