As tenants have difficulty making their rent payments, landlords in turn are defaulting on their own loans.
Indeed, according to Trepp's Russell Hughes, there are signs that in the data that some borrowers may be strategically defaulting on their loans. That could lead to a wave of foreclosures in the coming four to six quarters.
Overall, the delinquency rate increased by 65% in Q2 from 0.36% to 0.59%. While this is a material increase, it is generally within the expected range, given the current economic conditions.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
