Reply to Several Affordable Housing Developers Are on the Verge of Collapse

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Reply to "Several Affordable Housing Developers Are on the Verge of Collapse"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Let them go bankrupt and just demolish the buildings once they get repossessed for unpaid property taxes. Provide dispossessed people with one way bus tickets to very liberal jurisdictions like NYC that believe housing is a "human right". [/quote]

Or just let them be seized in bankruptcy. The tenant protections will remain in place as will any DC restrictions on the buildings. With the mortgage payments wiped out in bankruptcy, they'll be profitable [/quote]

Why would the mortgage payments be wiped out in bankruptcy. Lenders have liens which if first priority can remain intact through bankruptcy? [/quote]

If the lender is not interested in taking back the property, they actually have leverage renegotiate the loan with more favorable terms. [/quote]

This is more common with office properties, but can happen with multifamily residential as well. Banks will try to avoid foreclosure on properties if this will result substantial losses on their financial statements. They would rather renegotiate the terms of the loan than recognize a significant loss that will risk their stock prices. [/quote]

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