In the world of commercial real estate, we don’t use the clever residential phrase ‘Jingle mail;’ Rather, the preferred term is “Default & Forfeiture.”
The WSJ:
‘Jingle mail” isn’t just for homeowners anymore. From San Diego to Dearborn, Mich., an increasing number of hotel owners in the U.S. market are simply walking away from money-losing properties and forfeiting them to lenders.
The rise in hotel forfeitures is the product of the worst hotel market since the early 1990s, with revenue declining by double-digit percentages. That has pushed the value of many hotels to less than the balance on their mortgages. Just like homeowners who mail their house keys back to the bank — so-called jingle mail — hotel owners see no hope in renegotiating their loans . . .
To be sure, a delinquency doesn’t immediately or always translate to foreclosure. It often takes several months for a lender to foreclose on a property with a delinquent mortgage. And some delinquent borrowers manage to negotiate with lenders to avoid foreclosure or file for bankruptcy protection to thwart it.
What is striking about the current trend is that several of the companies forfeiting hotels are publicly traded.” (emphasis added)
This is completely unsurprising . . .
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Source:
Hotels Deliver Some ‘Jingle Mail’
By KRIS HUDSON
WSJ, AUGUST 15, 2009
http://online.wsj.com/article/SB125029276280433451.html
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