As the market waits for conditions to improve, lenders and borrowers engage in “pretend and extend” tactics that essentially extend terms on maturing loans, giving borrowers more time to refinance. By waiting for aspects of the market to improve — demand to strengthen, rents to rise, inflation to decline or operating and capital costs to fall — some borrowers may prevent foreclosure and some banks may avoid turning into an owner-of-last-resort, thereby saving the market from becoming flooded with devalued assets." https://lnkd.in/eUtKqgxX