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Higher Foreclosure Rates Indicative of Deepening Turmoil in the CRE Sector

Published on November 17, 2023

According to the Wall Street Journal, foreclosures on higher-risk commercial property loans – particularly mezzanine loans – are increasing. Mezzanine financing, which often serves as second-lien debt, allows borrowers to meet tighter bank underwriting standards. These increasing foreclosures underscore the stress in the commercial real estate market due to rising vacancies and higher interest rates.

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