Many commercial projects built during the "perfect storm" in Las Vegas have gone into default, victimized by falling real estate values, rising vacancy, and reduced net operating income. Turmoil continues to ripple through the commercial real estate market, attorney Abran Vigil of Ballard Spahr said. Some developers have been able to stave off foreclosure through loan modifications and workouts with lenders, hoping to survive until cash flow improves or debt can be refinanced.

"A lot of times we see a (debt) maturity date come up and they kick it back a few years," Mr. Vigil said at a seminar on workouts, foreclosures, and bankruptcies. "They're splitting the note into an A note and B note, restructuring it so ultimately you get the full balance paid back."