Posted On: August 24, 2010
Potential for Florida Commercial Foreclosure Crisis Looms Large
As one of the largest markets in the U.S. for commercial real estate loans, Florida is at risk of significant financial losses if commercial foreclosure forecasts prove correct, says one Jacksonville business and tax attorney.Florida Attorney General Bill McCollum has put the Florida state legislature on notice that they need to act quickly to avert the potentially devastating consequences of predicted commercial foreclosures.
In a letter to Florida House Speaker Larry Cretul, McCollum noted that while the Florida residential foreclosure crisis has been top-of-mind throughout the state, commercial foreclosures may have an "even greater potential to negatively impact the state and national economies...In anticipation of this crisis, the Legislature may wish to review current Florida law and the finding of the Congressional Oversight Panel."
In February, the Congressional Oversight Panel released its Commercial Real Estate Losses and the Risk to Financial Stability report, which cited numerous troubling trends: rising vacancy rates, falling property prices and rising commercial real estate loan delinquency rates.
McCollum said that other states have already enacted laws that could ease the pain of commercial foreclosures, and that legislators should consider similar measures for Florida.
If your Florida company is facing business or tax risks, contact Wood, Atter & Wolf, P.A. Jacksonville, Florida business and tax law attorneys.
