As distressed real estate loans pile up, banks play game of ‘extend and pretend’
June 26, 2024 – Media Mention
Crain's New York
Co-chair of Herrick's Real Estate Department, Jonathan Adelsberg, was quoted in an article from Crain's New York discussing the notion of "extend and pretend" in uncertain real estate markets.
When discussing how some lenders choose to agree to extend the loan until in the hopes that a property's fortunes will improve, Jonathan explained, "Banks don’t want the keys, either." He noted also that sometimes a lender will extend a mortgage because a building’s diminished value remains higher than its debt.