The Real Deal Miami

Loan extensions popular as ever in distressed retail

May 11, 2010 03:40PM

Special servicers are getting creative with their stall tactics as the volume of distressed retail mortgages mounts, according to industry magazine Retail Traffic. Loan extensions are as popular as ever, and in some cases, special servicers are so reluctant to take back properties from their borrowers that they are granting informal extensions without asking for any additional capital. In one such instance, a shopping center owner in the New York metro region wanted to walk away from the property, but instead, the servicer is allowing him to operate it month-to-month without a loan modification or extension in exchange for any income beyond the operating expenses and fees. [Retail Traffic]