The Trouble with Commercial Real Estate

What's ailing commercial real estate? Imagine if the fixed-rate loan on your house had just a seven or ten-year term and ended in a massive balloon payment. That's the story for most commercial properties.

Look around: if there's an office tower or apartment complex, chances are it was financed with a loan that ends after a few years with a balloon. That's part of the reason commercial real estate experts are worried about foreclosures -- and the depressing headlines, lender woes and bond chaos they could bring.