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Lists of Government Foreclosure Homes Not the Only Problem in Seattle

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By : John Cutts    99 or more times read
It is not only lists of government foreclosure homes and bank owned foreclosed dwellings that are weighing down the real estate market of Seattle, Washington. Recently, news about a big number of commercial properties facing possible mortgage defaults had made the headlines.

According to property market observers, foreclosure listings in Seattle might soon have to add a number commercial real estate as several office buildings and commercial complexes owned by Goldman Sachs are in danger of defaulting on their mortgage loans.

The real estate portfolio, paid for by Whitehall Street Global Real Estate Limited Partnership, a Goldman affiliate, has reportedly lost over 30% of its tenants. The value of the properties has declined since their purchase in 2007, causing fears that the 11 office buildings will eventually end up in Washington foreclosure listings.

Whitehall reportedly paid $930 million for the properties in 2007. The buildings were almost fully occupied during the time of purchase, with one of the biggest tenants, Washington Mutual, already in contract for at least 10 years. However, as the number of properties under lists of government foreclosure homes and bank foreclosures increased during the housing market crisis, tenants at the buildings also started losing revenue, with most of them opting to leave the premises.

This left the Whitehall properties with over 30% of unoccupied spaces. In addition, the values of these commercial real properties also declined, just like what happened to majority of properties favored by buyers who try to find foreclosure list homes and buildings in Seattle. Real estate observers have estimated the decline in the value of Whitehall properties to be as much as 60%.

Furthermore, housing market experts are predicting that Whitehall will eventually default on the loans it took out for the properties back in 2007. The loans are scheduled to mature in one and a half years and the principal worth around $900 million should be paid by then.

The prediction came after the institution that services the mortgage, Key Bank, has put the mortgage on its watchlist. According to Key Bank, it made the move because of the decline in the properties' occupancy. Most analysts stated that there is a possibility that the buildings will meet the same end as the thousands of properties under lists of government foreclosure homes and bank foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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