TALLAHASSEE, Fla. - March 23, 2010 - Attorney General Bill McCollum wrote to legislative leaders on Friday urging them to take note of the potential for "massive" foreclosures on commercial real estate, as more than $1 trillion in commercial real estate loans from Florida's most recent big boom all reach the end of their terms about the same time.
"As I learn more about the potential for massive commercial real property mortgage foreclosures, I am convinced that swift legislative remedial action this session would avert some of the more devastating consequences of such foreclosures," McCollum wrote. "As one of the largest markets in the nation for commercial real estate loans, Florida faces a significant risk of financial loss."
McCollum urged lawmakers to look at some of the actions other large states have taken, including the passage of laws that require that all claims be consolidated into a single action, or prohibit certain lawsuits that seek to hit up borrowers personally before proceeding against the borrower's collateral.
Source: News Service of Florida
