Carol Faber, Distressed Property Practice Co-Chair, explained the likely jump in distressed properties as a result of the COVID-19 pandemic in a Mortgage Professional America article. She elaborated, “This is affecting lending because if a tenant can’t meet the obligations of their lease, it makes it harder for the landlord to pay their lender. That’s what we are seeing and hearing from our clients right now.”
In terms of investors looking to purchase distressed properties in hopes of making big profit in the future, Faber warns that there are a lot of issues that need to be addressed. “You need to know what you’re doing, and you need to be careful. There are practical issues that need to be understood, in terms of property type, condition of property, and cash flow, but there are also a lot of legal aspects to consider,” Faber said.