“Kerr said banks are supportive. ‘They know they’re better off hanging in there than doing a fire sale,’ he said. ‘In our conversations with lenders, we’ve told them, ‘We don’t want to toss you the keys, and we don’t think you want us to toss you the keys, because who will (manage the project) better than we will?’ And they know that.’”
“‘Do I think (by renting the units) you can cover 100 percent of your debt service? Probably not,’ Easley said. ‘”But that basically buys you time and allows you to wait for the market.’”
What could possible change the market at this point? The soonest the Feds will start lowering rates is in Spring 2007. We know the population of San Diego is declining. Most importantly, the greed frenzy and the fear of being priced out are gone.
