http://www.dallasnews.com/sharedcontent/dws/bus/stories/032310dnbuscommercial.3b4450f.html

Dallas-Fort Worth commercial foreclosure filings top $1 billion

08:02 AM CDT on Tuesday, March 23, 2010
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com

Commercial property foreclosure filings in the Dallas-Fort Worth area top $1 billion for the upcoming April sales.

That's much higher than commercial foreclosure posting totals in recent months.

"It's certainly the highest we've seen in this cycle," George Roddy of Foreclosure Listing Service said Monday.

The Addison-based foreclosure-tracking firm counts 333 D-FW commercial properties scheduled for auction by lenders next month.

During the last few months, the auction totals have averaged about 250.

Among the properties set for sale next month are the Element Hotel in Irving, with $13.1 million in debt, and the Firewheel Distribution Center in Garland, with $13.1 million in debt, according to Foreclosure Listing Service.

Part of Allen's Star Creek development on State Highway 121, with about $15 million in debt, also made the April foreclosure list.

The biggest current foreclosure posting is still the Four Seasons Resort and Club at Las Colinas, with $183 million.

Although the 400-acre resort has been facing auction for several months, owner BentleyForbes and its lenders have reached a "standstill agreement" while debt negotiations continue.

BentleyForbes officials said earlier this month that they "expect that a resolution will be reached in the near future."

But it's not unusual for a mortgage holder to continue posting a property for foreclosure while talks go on.

Not all properties listed for foreclosure each month are actually sold by the lender. Many times, the borrower reaches a new mortgage agreement or delays the forced sale.

In 2009, the number of commercial properties posted for foreclosure in Dallas-Fort Worth jumped almost 27 percent. More than 2,400 properties, including offices, warehouses, shopping centers, hotels, apartments and commercial land, were posted for foreclosure last year.

It's no wonder that Dallas-Fort Worth's commercial property foreclosures are spiking.

A new report by First American CoreLogic says that D-FW led the nation in commercial mortgage maturities in February. More than $4 billion of about $20 billion in U.S. commercial property loans that came due in February were on properties in North Texas, the researchers found.

The Houston area was second, with almost $3 billion in maturing commercial mortgages.

With lenders still keeping a tight rein on real estate debt, it's often impossible for borrowers to extend or refinance commercial property loans.

Is it just me, or does anyone else think bankers are some of the stupidest people around?  "Hey, everybody else is making these wacky loans... let's get some."  (BIG BURN)  "Hey, nobody else is making any loans - even though we can borrow the money to re-lend for practically nothing - we better not make any loans either."

Sure seems to me that the banks are the major contributors to the current RE conditions & foreclosures... if nobody is lending, everybody falls into default...and with so many defaults, we can't be taking chances like that.  Isn't that EXACTLY what they did during the Great Depression... until they figured out they really didn't want to OWN all those homes?  That being patient and working with their customers paid bigger dividends than taking houses they couldn't sell away from decent people?

Should be a great time for bankers to build long-term relationships and knock their competition in the creek by making reasonable loans.

Rant over.

George

money makes people stupid.

  I wonder if the locally owned banks (like Beal Bank) are any different on their lending practices or is the stupidity limited to major lending firms who got the TARP money? 

I've heard economists say that it's best to leave the big banks and put your money into home-town banks for several reasons. The rates are better. The fees are cheaper. You establish a relationship with someone you can actually have a relationship with. Your money is circulated locally not nationally.

look at Frost Bank.  They are the only TEXAS chartered bank that's survived the 1800's and 1900's.  Just saying they have a stellar reputation.

Quote from: muskrat on March 24, 2010, 11:34:25 AM
money makes people stupid.

Gotta disagree with ya hoss... I know lotsa stupid people with no money

Quote from: Duc L'Smart on March 25, 2010, 10:09:40 AM
Gotta disagree with ya hoss... I know lotsa stupid people with no money

True that.

If you gave everyone in the USSA (we are socialist now you know) a million bucks...
in a year the poor would be poor again.

They are where they are on the socioeconomic scale with good reason.
(it should be said accidents do occur on both ends of the spectrum)

I stand by my statement!  We now need "selective" breeding programs to clean up the gene pool too. 

Quote from: muskrat on March 25, 2010, 03:19:13 PM
I stand by my statement!  We now need "selective" breeding programs to clean up the gene pool too. 

Not really.  Sombody has to pump the gas. 
The problem starts when people confuse being born with equal rights to achieve or fail in life
and being born means I get all of your shit I want -because I want.  I say so.  That's my right.

Well yeah.  You've got some nice shit.

Quote from: RichD on March 26, 2010, 03:59:34 AM
Not really.  Sombody has to pump the gas. 
The problem starts when people confuse being born with equal rights to achieve or fail in life
and being born means I get all of your shit I want -because I want.  I say so.  That's my right.

Stop Entitlement Programs!!.

Quote from: boobies on March 26, 2010, 06:47:43 AM
Well yeah.  You've got some nice shit.

 

Well I haven't scored a mortgage yet, as we're not quite strong enough financially, but looks like I have an offer sheet for another 2 years to finish up my work.  I should be strong enough by next year to roll into an amortized deal.  Nothing is done yet, but thumbs up for an option and keeping my properties.