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Navigating Troubled Loans in Commercial Real Estate
This chapter analyzes the 'extend and pretend' strategy utilized by banks regarding troubled loans, contrasting the methods of well-capitalized versus undercapitalized institutions. It discusses recent declines in commercial real estate mortgage originations, potential loan restructurings, and the implications of diminished property values amidst increased risks. Additionally, it addresses specific cases, including significant financial challenges faced by notable properties, highlighting the evolving landscape in commercial real estate financing.