Carol Faber, Distressed Properties Practice Co-Chair, spoke to Mortgage Professional America about the increased interest from investors on distressed properties, following the economic downturn associated with the global pandemic. The amount of foreclosed properties to hit the market largely depends on how much relief government programs will provide to small businesses in an attempt to survive.
“There’s a lot of eyes on the government programs that come into play, like the PPP and Main Street loans to ease liquidity on the lending side. A lot of local and state governments are putting different programs in place as well, all the way down to the consumer level with tenants,” Faber said.
She also pointed out that investors should keep an eye out on office space, as many businesses may be forced to scale back. “Even though tenants are locked in leases, there are some who won’t need as much space anymore and when those leases come due, it remains to be seen what will happen.”