Thursday, December 13, 2007

$900 million dollar default

Apartment owner to default on $900 million:

MBS Cos., one of the largest multifamily property owners in the country, is delinquent, in default or in danger of becoming so, on more than $900 million in loans. For Michael B. Smuck (the MBS in the company name), that means he is in danger of seeing his apartment empire dissipate for the second time in his nearly 30-year real estate career.

Based in the New Orleans area, MBS Cos. owns and operates more than 65 apartment complexes totaling about 17,000 units - all in Texas.

Smuck's debt problems have been the subject of whispered conversations among financial firms and analysts for the past month as the extent of the company's financial problems slowly came to light. Those same financial analysts fear if MBS defaults, it could spell losses for many and affect property recovery operations, potentially for years to come. It will also generate a huge spike up in CMBS delinquencies, expected to be reported this week or next.

5 comments:

BubbleBoy said...

Bubbble you might want to create another blog with this Crisp story unless I missed the orignal post
http://www.salon.com/tech/htww/
2007/12/05/bakersfield real
estate/index.
html

Robert said...

Michael B smuck is a fraud he loans all this money, and spends nothing! he the takes in all illigal immigrants and calls it a loss.

he needs to be put in prison!

Robert said...

If any Banks that have been ripped off (defaulted) by Michael b smuck are interested in actual documentation and proof that he is stealing from you please email me at gimeegames@yahoo.com

he takes the money, repairs nothing, or make small fake repairs and does not pay the invoice.

he obviously funnels money into international accounts the transfers it back in us currency and calls it all a loss!!

Nearly 1 billion dollars stolen and he is still walking free WHY?

He is also part of a identity theft ring!

murrells Inlet rentals said...

this is becoming more and more common

Anonymous said...

I heard that Michael B. Smuck was running a ponzi scheme similar to Bernie Madoff. The feds are after this guy. He still owns his condo in Sandestin, FL as of Feb. 2009 and his son Michael Jr. is building a new house.