According to recent reports the delinquent and defaulted commercial mortgages jumped 14% to $ 50.3 billion during the third quarter of 2009. During the same period the commercial default rate rose 2.88% to reach 3.4% forming the highest default rate since 1993 which was 4.1%.

Since the beginning of 2009 the national default rate for commercial real estate mortgages has now risen 63 basis points from 2.25% therefore having doubled since the past year. The 52 basis point increase is the third quarter of 2009 is the largest increase in any quarter since quarterly data became available in 2003.

It is estimated that the default rate for commercial real estate mortgages held by depository will hit 4% in the fourth quarter of 2009 , 5.2% by end of 2010 and peaking at 5.3% in 2011. The rising default rate is bad news for already stressed banks.

Original Article.

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

ps. click here to like us on facebook

 & Here to follow us on twitter