Changes

Many mortgages were held by mortgage companies like [[Countrywide]] and [[Washington Mutual]], as well as investment banks such as [[Bear Stearns]], [[Merrill Lynch]], [[Lehman Brothers]], [[Morgan Stanley]] and [[Goldman Sachs]], as well as commercial banking chains like [[Wachovia]] and [[Bank of America]], which have thousands of local offices.

Many mortgages were held by mortgage companies like [[Countrywide]] and [[Washington Mutual]], as well as investment banks such as [[Bear Stearns]], [[Merrill Lynch]], [[Lehman Brothers]], [[Morgan Stanley]] and [[Goldman Sachs]], as well as commercial banking chains like [[Wachovia]] and [[Bank of America]], which have thousands of local offices.

===Commercial real estate===

===Commercial real estate===

The speculative [[housing bubble|real-estate bubble]] went far beyond individual homes, it infected as well as  kinds of commercial real estate, such as office buildings, shopping centers, apartment complexes, hotels, casinos and even and empty lots. People bought high expecting to  sell higher, and were stunned when the market collapsed. People who loaned money to real estate firms were confident of a 20% return, but more likely lost 25%. The value of office buildings plunged 43% after the peak in Nov. 2007.  Most investors who bought in 2007 probably lost all their investment.

The speculative [[housing bubble|real-estate bubble]] went far beyond residential homes, it infected as well all kinds of commercial real estate,<ref>Commercial real estate lending is more specialized than Fannie Mae lending, as much commercial property tend to be one-of-kind investments; finding comparable properties to establish appraisal value can be very difficult and complicated. Hence, commercial rates tend to begin at 10% for the best credit customers with much shorter terms and balloon payments.</ref> such as office buildings, shopping centers, apartment complexes, hotels, casinos and even empty lots. People bought high expecting to  sell higher, and were stunned when the market collapsed. People who loaned money to real estate firms were confident of a 20% return, but more likely lost 25%. The value of office buildings plunged 43% after the peak in Nov. 2007.  Most investors who bought in 2007 probably lost all their investment.

For example, in 2006 at the top of the market Tishman Speyer Properties and BlackRock Realty invested $5.4 billion to buy the largest apartment complex in the country, in downtown New York City. Stuyvesant Town and Peter Cooper Village, with 110 buildings and 11,227 apartments housed middle class families. The plan was to spend billions in upgrades and as tenants moved out to raise the rents.  The plan was wildly overoptimistic and the monthly rent did not cover the debt payments. In Jan. 2010 Tishman Speyer and BlackRock turned over the property to creditors, taking a 100% loss.<ref>Charles V. Bagli, "Huge Housing Complex in N.Y. Returned to Creditors," [http://www.nytimes.com/2010/01/25/nyregion/25stuy.html?hp ''New York Tomes'' Jan. 25, 2010] </ref>

For example, in 2006 at the top of the market Tishman Speyer Properties and BlackRock Realty invested $5.4 billion to buy the largest apartment complex in the country, in downtown New York City. Stuyvesant Town and Peter Cooper Village, with 110 buildings and 11,227 apartments housed middle class families. The plan was to spend billions in upgrades and as tenants moved out to raise the rents.  The plan was wildly overoptimistic and the monthly rent did not cover the debt payments. In Jan. 2010 Tishman Speyer and BlackRock turned over the property to creditors, taking a 100% loss.<ref>Charles V. Bagli, "Huge Housing Complex in N.Y. Returned to Creditors," [http://www.nytimes.com/2010/01/25/nyregion/25stuy.html?hp ''New York Tomes'' Jan. 25, 2010] </ref>