http://disqus.com/by/JoetheInvestor/enWed, 15 Jul 2009 10:44:32 -0000http://retailtrafficmag.com/finance/lending/lenders-wary-losses-0714/#comment-12694601<p>A part of the uncertainty in the market is the role of special servicers. If a special servicer also has an equity branch, distresssed borrowers might view the behavior of the servicer as trying to drive the borrower into default and then allow the equity unit of the special servicer to pick up the asset at an attractive price--whether this serves the interest of the lender or not. How would the special servicer do this? Simple. Just drag out the contacts between borrower and servicer without addressing the request for loan payment adjustment until borrower's reserve is run down. Borrowers with equity in property are finding it near impossible to engage in substantial discussions with their lenders as the servicers put off real dialogue.</p>JoetheInvestorWed, 15 Jul 2009 10:44:32 -0000