Comment by AnthonyMouse
15 hours ago
> For who and in what way though?
For anyone who wants an accurate accounting.
Suppose the building is supposed to be worth $20M, has an existing $10M mortgage and is actually only worth $10M. The landlord comes to you and wants to borrow another $5M against the building. Pretty important to the lender at this point that they're not overvaluing it, right? Or the same if they go to a different bank trying to refinance an existing mortgage they're already underwater on when using an accurate accounting.
Commercial borrowers have to pay for a valuation report by a bank approved valuer.
Then why does anybody care if they rent out some of the units for a lower rent?
You keep asking the same question and the answer is the same in all these.
You don’t like it. We get it.
No one is doing anything illegal. If the bank thought a customer couldn’t pay, they’d get foreclosed, end of story.
... who therefore agree with the assumptions of this broken system.
Broken how? The owner/bank are fulfilling their obligations. You just don’t like the outcome.