I just read a report from the Mortgage Bankers Association showing that $171 billion worth of commercial/multifamily mortgages held by non-bank lenders and investors will mature this year. I then saw this USA TODAY story on how the industry is bracing for more foreclosures and bankruptcies.
This paragraph, straight from the story, sums it up:
Until now, hotels have been spared from waves of foreclosures that have rocked the housing market. But that could change this year, sayshotel attorney Jim Butler. "It's like a water balloon and someone forgot to turn off the water. But it hasn't burst yet."
We've already seen some resorts filing for bankruptcy and even shutting down and recentthat MGM-Mirage may default wasn't a surprise, considering what's going on in Las Vegas. Hopefully someone can shut off the water before this gets worse.