CMBS loans can be a great source of financing for commercial real estate investors. In general, they’re the only type of non-recourse loan that can finance nearly all income-producing property types. However, CMBS loans aren’t without their drawbacks. In this article, we look at both the pros and cons of CMBS loans in order to give you a fuller picture.
What is a Special Servicer?
Special servicers handle the servicing of CMBS loans before and during loan defaults-- but they don't always have the borrower's best interests in mind. A servicer may attempt to help the borrower achieve a loan modification, or, more commonly, they may attempt to repossess the property in order to make the CMBS investors whole.