Many of these loans are similar to second mortgages and commonly known as mezzanine loans. In contrast, foreclosing on mezzanine loans is often quick and easy because they aren’t technically mortgages. Finance companies pooled billions from thousands of would-be immigrants in the EB-5 cash-for-visa program, turning them into mezzanine loans to developers. Mezzanine loans are secured by the limited-liability company owning the building, not by the real estate itself. Methodology:The Journal counted Uniform Commercial Code foreclosure-sale notices that list commercial real estate as collateral.

Source: Wall Street Journal November 13, 2023 14:08 UTC