Pop the Bubble of a Commercial Loan Balloon

Millions of commercial mortgages are either still underwater or have large balloon payments due. Commercial mortgages originated prior to 2008 were structured with a balloon payment which was a popular option during that time.

For those not familiar with the term, a balloon payment is a large payment due at the end of a mortgage or loan. Since the payments are not spread out over the full term of a normal 30 year mortgage,