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What Happens When a Landlord Can't Pay the Mortgage

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This is a nice little report from a local television station talking to tenants of a shopping center owned by AIG Baker. AIG Baker is behind on mortgage payments and tenants are paying rent directly to the company's mortgage holder. AIG Baker, according to the report, says it is working out a forbearance agreement with the bank.

This story speaks to the business in distressed assets that owners and managers as well as brokers are seeking to win. Firms want to be the ones banks turn to in situations like this. If, for example, AIG Baker can't work out its forbearance and the asset stays with the lender, does the bank really have the expertise on hand to run the asset? It also seems like it could use someone that can go and talk to the tenants and let them know exactly what's occurring.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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