The Real Deal Miami

Developers asking for bailout

December 22, 2008 12:10PM

Several property developers are asking the government for assistance,
warning that thousands of commercial buildings are headed into default,
foreclosure and bankruptcy. In the next three years, $530 billion in
commercial mortgages will be due for refinancing, and credit remains
tight. The real estate industry is asking to be included in a new $200
billion loan program which was intended to help the student loan, car
loan and credit card debt markets. Developers argue that if commercial
real estate is included in the program, banks will have more of an
incentive to make loans to developers.