Don't Look Back: Major Players Continue To 'Walk Away' From Poor Mortgages

[BR_Parkway]

As underwater homeowners around the country despair over whether to keep paying their mortgages or just walk away, investors in the largest residential real estate deal in U.S. history have just walked away from 11,232 properties in one fell swoop.

On Monday a group led by Tishman Speyer Properties gave up the 56-building, 11,232-unit Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan, turning the properties over to its creditors after defaulting on some $4.4 billion in debt.The group decided to "transfer control and operation of the property...to the lenders," it told the Wall Street Journal. The $5.4 billion acquisition in 2006 was the single biggest residential property purchase in U.S. history.

It's now worth an estimated $1.8 billion, putting the properties' owners "underwater."



http://www.huffingtonpost.com/2010/01/25/dont-look-back-major-play_n_435965.html

[GodlessBiker]

1. Now, will this give Tishman a poor credit rating? No.

[FBaggins]

2. Of course it will

Unless the article misstates what happened and this was voluntary on the part of both parties.

You think banks don't look at a company's prior repayment history when deciding whether or not to make a loan?

[metapunditedgy]

5. True, but Tishman (and their ilk) have lots of ways to secure financing

that common people don't. Shmooze a bit, get the right venture capitalists drunk, sell them a deal, snap a few photographs, and start the next big project.

[GodlessBiker]

6. This will be forgotten in 6 months, and Tishman will be able to secure financing on new projects.

[FBaggins]

7. Tishman is close to bankruptcy

There's a good chance that if they're getting financing in six months it will be some other company using their name.

[FBaggins]

3. Hey... I just remembered where this is!

This was the development where the tenants tried to buy the property 3-4 years ago. Tishman Speyer outbid them by about a billion dollars.

Bet they're happy now that they lost that bid then! And the prior owner (Met Life?) must be ecstatic that they got out when they did.

[BR_Parkway]

9. maybe they'll be able to get it at a better price

[FBaggins]

10. From what I've been reading, that may be the case. n/t

[GreenTea]

4. Corporations do it all the time, they'll tell you through their usual stooges how immoral you are if

you do it....These slimy fucks should shut the fuck up and mind their own fucking business...everybody's situation is different and who are they to judge while ignoring the same banks and corporations who do it everyday, knowing its a good business decision to walk away to stay afloat, to try again another day....just as it is for the individual in order to do what's best for themselves and their family.

[Name removed]

8. Deleted message

Message removed by moderator. Click here to review the message board rules.

[phantom power]

11. Predictably, there is no mention of "moral hazard"

Moral hazard is only for the Little People.