Winter 2001/2002, Vol 26, No 4
Abstract: After unprecedented years of economic expansion, our teetering economy was shoved rudely toward recession by the September 11, 2001, terrorist attacks. Prior to the events of that fateful day, many lenders’ pipelines were starting to see a flow of troubled real estate loans—particularly those loans secured by special purpose real estate associated with operating businesses. Now the pipelines are starting to fill with such loans gone sour. This article provides lenders a brief reminder about the basics of working with troubled loans, then moves beyond those fundamentals to discuss some of the unique issues and problems encountered in dealing with troubled loans on such real estate assets.