Quote:
Originally Posted by kcantor
that's because you're focusing on the exceptions to the rule, not the rule. the rule is that the vast majority of developer and landlord loans are repaid on a profitable basis to the lenders that made them. and every one of those loans had some risk/default failure premium built in to the interest rate charged to make up for the occasional - and the occasional spectacular - failure of a particular project. the commercial market is no different than the residential one but no one would look at the mortgage defaults resulting from personal bankruptcies and thank that banks are foolish in still underwriting residential mortgages.
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Understood. I've watched a few developers lose their shirts and go through bankruptcy more than once (the 80s and 90s made for good entertainment) and yet they always seem to bounce back. Good on them, I'd suppose.
